A 15 year fixed rate mortgage calculator is a very handy tool that can easily show a homeowner the pros and cons of refinancing from a 30 year fixed mortgage. It can also be helpful for a new home buyer who may be considering choosing a shorter mortgage term to cut the amount paid in interest over the terms of the loan.
When using any 15 year fixed rate mortgage calculator, there are a few important factors to consider. The more accurately the information is used in the calculator and the more realistic the input selected, the more accurate and authentic the results will be.
Authentic Income and Expenses
A common mistake that people make when using an online mortgage calculator is to underestimate the amount of debt they will carry forward. For example, you may need to replace or add a vehicle, pay off student loans, deal with high levels of credit card debt or even manage unexpected medical bills or other expenses.
There is no point in looking at scenarios that are not financially feasible. Instead, focus on accurate and realistic information to make informed choices.
Consider the 15 and 30 Year Fixed
A very helpful option will be to use a 15 year fixed rate mortgage calculator that also allows you to compare a 30 year fixed side by side using the same values for the variables.
This is an eye-opening exercise, as it helps illuminate the savings from a 15 year fixed rate mortgage as compared to its 30 year counterpart. Of course, it will also show the increase in the monthly payments, which you will need to consider if you’re planning to choose this loan type.
At Guaranteed Rate, we offer a 15 year fixed rate mortgage calculator as well as one that compares 15 and 30 year fixed mortgages. To access these handy tools, visit us online at www.guaranteedrate.com.