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

Keep Your Umbrella Handy

Keep Your Umbrella Handy

Umbrella liability can be a fairly inexpensive way to help shelter current assets and future income from the unexpected.

Understanding Qualified Charitable Distributions

Understanding Qualified Charitable Distributions

Use this handy, informative article to help your clients understand Qualified Charitable Distributions (QCDs).

What’s Your Investment IQ?

What’s Your Investment IQ?

You make decisions for your portfolio, but how much do you really know about the products you buy? Try this quiz