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$750,000 Mortgage Over 15 Years
This page shows what a $750,000 mortgage costs over 15 years. The starting rate is 5.5 percent and you can change it to match a quote you have.
The starting payment is $6,128.13 a month. Over 180 payments you would pay $353,063 in interest.
How the payment is worked out
Here is the formula in plain words. The payment equals the loan times the monthly rate over one minus a discount factor. The discount factor is one divided by one plus the monthly rate, multiplied out 180 times. With 5.5 percent a year the monthly rate is 0.4583 percent. The loan here is $750,000.
Worked example
Run the numbers for a $750,000 mortgage at 5.5 percent over 15 years. The payment is $6,128.13. Of the first payment, $3,437.50 is interest.
Total interest on this loan is $353,063. After 8 years of payments the balance has fallen to $426,451.
Questions about this calculator
Is 15 years the right length for a $750,000 mortgage?
It depends on the monthly payment you can carry. At 5.5 percent this term costs $6,128.13 a month. A 30-year term would cost $4,258.42 a month and $783,030 in interest, compared with $353,063 over 15 years.
Does the $6,128.13 payment cover property tax and insurance?
No. The $6,128.13 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 $750,000 mortgage over 15 years or save it elsewhere?
The calculator can only show what extra payments do. On this loan an extra $610 a month saves $51,467 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.
What if the rate on a $750,000 mortgage over 15 years were one point higher?
The payment would rise from $6,128.13 to $6,533.31, which is $405.18 more each month. One point lower would give $5,737.45.
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This page is for education only and is not financial or tax advice.