Refinance 30 Year to 15 Year Calculator
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Reviewed by Calculator Editorial Team
Refinancing your mortgage from a 30-year term to a 15-year term can significantly reduce your interest payments and pay off your loan faster. This calculator helps you estimate the potential savings by comparing the two loan options.
How This Calculator Works
The calculator compares two mortgage scenarios: your current 30-year loan and a potential 15-year refinance. It calculates the total interest paid, monthly payments, and total cost of each option, then shows the difference between them.
Key Formulas
Monthly Payment: Calculated using the standard mortgage formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
Where: M = monthly payment, P = principal loan amount, i = monthly interest rate, n = number of payments
Total Interest: (Monthly Payment × Number of Payments) - Principal Loan Amount
Total Cost: Principal Loan Amount + Total Interest
Assumptions
- Interest rates remain constant throughout the loan term
- No additional principal payments are made
- No property taxes or insurance costs are included
- All calculations are based on the same principal loan amount
How to Use This Calculator
- Enter your current loan amount (the principal amount you owe)
- Enter your current interest rate (the rate you're paying now)
- Enter your potential refinance interest rate (the rate you could get with a 15-year term)
- Click "Calculate" to see the comparison
- Review the results and decide if refinancing makes financial sense for you
Example Calculation
Let's say you have a $200,000 mortgage with a 6% interest rate. If you refinance to a 15-year term at 5%, here's what the calculator would show:
| Term | Interest Rate | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|---|
| 30 years | 6% | $1,247.68 | $299,402.40 | $499,402.40 |
| 15 years | 5% | $1,630.36 | $154,554.00 | $354,554.00 |
In this example, you would save $144,848.40 in interest by refinancing to a 15-year term.
Frequently Asked Questions
What is the main benefit of refinancing to a 15-year term?
The main benefits are lower monthly payments and paying off the loan faster, which can save you thousands in interest over the life of the loan.
Are there any downsides to refinancing to a 15-year term?
Yes, the main downside is that you'll pay more in interest over the life of the loan compared to a 30-year term. You should only refinance if you can afford the higher monthly payments and will benefit from the faster payoff.
How much can I save by refinancing to a 15-year term?
Savings vary based on your current interest rate, the new rate you qualify for, and your loan amount. Use this calculator to get an estimate tailored to your situation.
What credit score do I need to refinance to a 15-year term?
Lenders typically require good to excellent credit (660+ FICO score) for 15-year refinancing. The exact requirements vary by lender and your financial situation.