Mortgage Comparison: 20 Years vs. 30 Years
Mortgage Comparison: 20 Years vs. 30 Years
Determining which mortgage term is right for you can be a challenge. With a shorter year mortgage you will pay significantly less interest, but only if you can afford the higher monthly payment. Use this calculator to compare these two mortgage terms, and let us help you decide which term is better for you.
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Mortgage Inputs |
Monthly Payments |
Principal Balance by Year |
Definitions
Mortgage amount
Original balance of your mortgage.
Interest rate
Annual interest rate for your mortgage. Interest rates are generally lower for shorter term mortgages.
Marginal tax rate
This is your combined state and federal tax rate. This is used to calculate possible income tax savings by deducting your mortgage interest. Use the ‘Filing Status and Federal Income Tax Rates on Taxable Income’ table to assist you in estimating your federal tax rate.
Tax Rate | Married Filing Jointly or Qualified Surviving Spouse | Single | Head of Household | Married Filing Separately |
---|---|---|---|---|
10% | $0 - $23,200 | $0 - $11,600 | $0 - $16,550 | $0 - $11,600 |
12% | $23,200 - $94,300 | $11,600 - $47,150 | $16,550 - $63,100 | $11,600 - $47,150 |
22% | $94,300 - $201,050 | $47,150 - $100,525 | $63,100 - $100,500 | $47,150 - $100,525 |
24% | $201,050 - $383,900 | $100,525 - $191,950 | $100,500 - $191,950 | $100,525 - $191,950 |
32% | $383,900 - $487,450 | $191,950 - $243,725 | $191,950 - $243,700 | $191,950 - $243,725 |
35% | $487,450 - $731,200 | $243,725 - $609,350 | $243,700 - $609,350 | $243,725 - $365,600 |
37% | Over $731,200 | Over $609,350 | Over $609,350 | Over $365,600 |
*Caution: Do not use these tax rate schedules to figure 2023 taxes. Use only to figure 2024 estimates. Source: Rev. Proc. 2023-48 |
Monthly payment
Monthly principal and interest payment (PI). Both 30 year fixed and 20 year fixed mortgages are shown.
Total payments
Total of all monthly payments made over the full term of the mortgage. Both 30 year fixed and 20 year fixed mortgages are shown.
Total interest
Total of all interest paid over the full term of the mortgage. Both 30 year fixed and 20 year fixed mortgages are shown.
*Please consult with a tax professional regarding mortgage interest deductions and your specific situation.