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$250,000 Mortgage Over 15 Years
If you are thinking about borrowing $250,000 for 15 years, this page gives the payment and the full cost. It starts from 5.5 percent. Change it to match your own.
On the starting figures the payment is $2,042.71 a month and the total interest is $117,688.
How the payment is worked out
Every payment on a fixed loan is the same size. To find it, multiply $250,000 by the monthly rate of 0.4583 percent. Then divide by one minus the reciprocal of one plus that rate raised to the power of 180. That power is the number of monthly payments in 15 years.
Worked example
Worked through, $250,000 at 5.5 percent for 15 years gives a payment of $2,042.71. The first month splits into $1,145.83 of interest and $896.88 of principal.
Over the whole loan you pay $367,688. About 47 cents of each borrowed dollar goes to interest.
Questions about this calculator
Would paying $200 extra each month shorten a $250,000 mortgage over 15 years?
Yes. On this $250,000 loan an extra $200 each month ends the loan 1 year 11 months sooner and saves $16,915 of interest.
Is 15 years the right length for a $250,000 mortgage?
It depends on the monthly payment you can carry. At 5.5 percent this term costs $2,042.71 a month. A 30-year term would cost $1,419.47 a month and $261,010 in interest, compared with $117,688 over 15 years.
Does the $2,042.71 payment cover property tax and insurance?
No. The $2,042.71 covers principal and interest only. Tax, insurance and any mortgage insurance would sit on top of it.
Is it better to put extra money toward a $250,000 mortgage over 15 years or save it elsewhere?
The calculator can only show what extra payments do. On this loan an extra $200 a month saves $16,915 of interest and ends the loan 1 year 11 months sooner. Whether that beats saving or investing the money depends on your other goals and on what you could earn elsewhere.
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This page is for education only and is not financial or tax advice.