15-Year Refinance Calculator

Use this 15-year refinance calculator to estimate your potential mortgage payment, interest savings, and payoff date if you refinance your home loan to a 15-year term. Compare the results with your current 30-year mortgage to see if refinancing makes financial sense for you.

How to Use This Calculator

To calculate your potential 15-year refinance terms:

Enter your current loan balance (the amount you owe on your existing mortgage)
Input your current interest rate (the APR on your existing loan)
Enter your new interest rate (the APR you qualify for with your refinance)
Select your loan term (15 years or 30 years)
Click "Calculate" to see your estimated monthly payment and savings

The calculator uses the standard mortgage payment formula to estimate your new payment amount. The results are based on the assumptions shown in the calculator card.

Formula Explained

The calculator uses the standard mortgage payment formula:

Mortgage Payment Formula

Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]

Where:

P = Principal loan amount (current mortgage balance)
r = Monthly interest rate (annual rate ÷ 12)
n = Number of payments (loan term in years × 12)

This formula calculates the fixed monthly payment required to pay off the loan over the selected term. The calculator applies this formula to both your current loan and the potential 15-year refinance to show the comparison.

Worked Example

Let's say you have a $200,000 mortgage with a 6% interest rate. You qualify for a 15-year refinance at 4%. Here's how the calculation works:

Example Calculation

Current 30-year payment:

$200,000 × [0.005(1 + 0.005)^360] / [(1 + 0.005)^360 - 1] = $1,201.04

15-year refinance payment:

$200,000 × [0.00333(1 + 0.00333)^180] / [(1 + 0.00333)^180 - 1] = $1,456.32

Annual savings: $1,201.04 × 12 - $1,456.32 × 12 = $2,977.44

In this example, refinancing to 15 years would increase your monthly payment by $255.28 but save you $2,977.44 in interest over the life of the loan.

15-Year vs 30-Year Comparison

Here's a comparison of the key differences between 15-year and 30-year mortgages:

Feature	15-Year Mortgage	30-Year Mortgage
Loan Term	15 years	30 years
Monthly Payment	Higher (typically 20-30% more)	Lower
Interest Cost	Lower (typically 30-50% less)	Higher
Payoff Date	Sooner (15 years from today)	Later (30 years from today)
Cash Flow Impact	More money needed upfront	More money available now

Refinancing to a 15-year term can be beneficial if you want to pay off your mortgage sooner, have extra cash available to pay higher monthly payments, or qualify for a lower interest rate. However, the higher monthly payments may not be suitable for everyone's budget.

Frequently Asked Questions

Is refinancing to 15 years a good idea?

Refinancing to 15 years can save you thousands in interest payments, but it requires higher monthly payments. It's a good idea if you can afford the higher payments, want to pay off your mortgage sooner, or qualify for a lower interest rate.

How much more will I pay monthly with a 15-year refinance?

Typically, 15-year mortgage payments are 20-30% higher than 30-year payments for the same loan amount. Use our calculator to get an exact estimate for your situation.

What are the closing costs for a 15-year refinance?

Closing costs for a 15-year refinance are similar to those for a 30-year refinance, typically 2-5% of the loan amount. These include appraisal fees, title insurance, and other fees.

Can I refinance to 15 years if I have bad credit?

It's more difficult to refinance to 15 years with bad credit, but some lenders offer 15-year mortgages to borrowers with credit scores as low as 620. You may need to pay higher interest rates or closing costs.