Buying A House? How To Save A Small Fortune

post — Marcus Kieran @ 10:37 am — post Comments (0)
postAugust 6, 2010

Over the life of the mortgage loan, of course.

A traditional 30-year mortgage of $200,000.00 and an interest rate of 4.75%, the principal and interest payment would be $1043.00 per month and you would end up paying $175,600.00 in interest over the life of the loan.

Contrast that with a 20-year mortgage, with a 4.5% interest rate (you can typically get a lower interest rate with a shorter term) the monthly principal and interest payment would be $1265.00 and you would end up paying $103,670.00 in interest over the life of the loan.

Saving you about $71,930.00 in interest. Not bad.

So if you can do it, it would be worth it for you to get a 20-year note over the long run.

P.S. Most mortgage brokers will probably not suggest a 20-year note for you so you may have to approach the subject on your own.

Similar Posts:

Share

Sorry, no comments yet.

Write Your Comment

Comment Guidelines: Basic XHTML is allowed (a href, strong, em, code). All line breaks and paragraphs will be generated automatically.

You should have a name, right? 
Your email address, I promised I won't tell it to anyone. 
If you have a web site or blog, you can type the URL right here. 
This is where you type your comments. 
Remember my information for the next time I visit.