Here’s a startling fact (and we have the math to prove it)

If you replace your current 30-year mortgage with a 15-year mortgage, you’ll save an average of around $111,000.

Let’s put it another way. If you keep your current 30-year mortgage, you’ll pay about $111,000 in interest you could have avoided. That money could go directly to your savings, your kid’s college fund or your retirement budget.

Make it real: see how much you could save with a 15-year mortgage >>

The chart below compares 30-year vs 15-year for different mortgage amounts. You can see the total interest cost. The savings from switching is in green.

interest cost
interest cost
$225,000 $167,000 $56,000 $111,000
$350,000 $259,000 $87,000 $172,000
$450,000 $333,0000 $112,000 $221,000

See the best 15-year mortgage options for you >>

So why doesn’t everyone have a 15-year mortgage?

Well, the fact is that more people should. But usually the reason folks don’t is because the monthly payments are higher. And they are – BUT – every extra dollar goes to paying off your mortgage – which is like a form of savings. Except, instead of earning 1% in your savings account, you’ll be avoiding paying $111,000 in interest!

So unless you can earn $111,000 in your savings account, refinancing to a 15-year mortgage is obviously the smarter move than putting that money into a savings account every month.

Switch to a 15-year mortgage now >>

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