Thursday, June 23, 2016

Why a 30-year home mortgage may leave you house poor

http://www.msn.com/en-us/money/realestate/why-a-30-year-home-mortgage-may-leave-you-house-poor/ar-AAhniRV


You can save a ton of money with at 15 year mortgage rather than a 30 year and the payments are not that drastically different and you can get better rates. Read the article for more details but here is a quick glimpse of the month payment and interest differences!

Based on our purchase price of $260,000, the 20% down payment of $52,000, loan amount of $208,000 and interest rate of 3.70%, the monthly principal and interest (P&I) payment for the 30-year loan is $957.39.

For the 15 year loan: With an interest rate of 2.70%, the monthly P&I payment for the 15-year loan is $1,406.59.

(this does not include any monthly escrow payment for insurance and taxes that will be required by the lender.)

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