For most, a home is the most significant purchase they will ever make. Use this calculator to see the difference between a shorter- and longer-term mortgage when strategizing for the future.

Loan Parameters

$50,000$10,000,000

Loan Comparison Results

First Loan

Monthly Payment$2,532
Total Interest Paid$155,683
Total Amount Paid$455,683

Second Loan

Monthly Payment$1,996
Total Interest Paid$418,527
Total Amount Paid$718,527

Visual Comparison

Monthly Payment
$2,532
First Loan
$1,996
Second Loan
Total Interest Paid
$155,683
First Loan
$418,527
Second Loan
Total Amount Paid
$455,683
First Loan
$718,527
Second Loan

Keep in mind that mortgage lenders have rules that they follow, such as the popular 28/36 guideline. It suggests that no more than 28 percent of a person's gross monthly income should be spent on housing costs (which includes your mortgage, taxes, and insurance) and no more than 36 percent on all debt. So before you get too deep into mapping out mortgage scenarios, it might be best to speak with a professional who can guide you through the numbers.

 

Related Content

Why Medicare Should Be Part of Your Retirement Strategy

Why Medicare Should Be Part of Your Retirement Strategy

How Medicare can address health care needs in your retirement strategy.

A Checklist for When a Spouse or Parent Passes

A Checklist for When a Spouse or Parent Passes

An overview of some fundamental steps when a loved one passes.

Five Most Overlooked Tax Deductions

Five Most Overlooked Tax Deductions

Five overlooked tax deductions to help manage your tax bill.