Real Estate
15-, 20-, 25- or 30-year mortgage: which term fits?
Compare payment and lifetime interest across common mortgage terms using the same principal and rate.
Using a $2,000,000 loan at 9% with no additional costs:
| Term | Payment | Total payments | Interest |
|---|---|---|---|
| 15 years | $20,285.33 | $3,651,359.70 | $1,651,359.70 |
| 20 years | $17,994.52 | $4,318,684.59 | $2,318,684.59 |
| 25 years | $16,783.93 | $5,035,178.18 | $3,035,178.18 |
| 30 years | $16,092.45 | $5,793,282.84 | $3,793,282.84 |
A shorter term saves interest but requires more monthly cash. A longer term improves near-term affordability while keeping the balance outstanding for many more years.
Choose a payment that leaves room for essential costs, maintenance, insurance and emergencies. If a longer term is necessary, confirm whether penalty-free extra principal payments can shorten it later.
Use the mortgage calculator to compare terms with the same inputs.