Mortgage Information : 15 vs. 30 Year loan
Under certain situations, a 15 year mortgage will be more beneficial than a 30 year mortgage.
15 Year Mortgage Benefits
- Earlier loan payoff
- Less interest paid over the life of the loan
- Lower interest rate
- Build equity in your home faster
30 Year Mortgage Benefits
- Best if you plan to live in your home for only a few years
- Lower monthly payment
Here's a comparison for a 15 vs 30 year loan.
| |
15 Year Loan |
30 Year Loan |
| Loan Amount |
200,000 |
200,000 |
| Interest Rate |
6% |
6% |
| Monthly Payment |
$1350.17 |
$959.28 |
| Down Payment |
$40,000 |
$40,000 |
| Number of Payments |
180 |
360 |
| Mortgage Principal |
$160,000 |
$160,000 |
| Interest Paid |
$83,030 |
$185,340 |
| Interest Savings |
$102,310 |
|
| Note: 15 year loans normally have a lower interest rate which would increase the interest savings even more. |
Click here for Mortgage Calculators.
HDFC Avoids Subprime Folly With $30,000 Mortgages (Update1) (Bloomberg) - Nov. 20 (Bloomberg) -- Housing Development Finance Corp ., India's biggest mortgage provider, has dodged the bad loans that plagued banks in the U.S. and Europe and plans to increase lending more than 20 percent this fiscal year, Managing Director Keki Mistry said.
U.S. MBA?s Mortgage Applications Index Decreased 6.2% Last Week (Bloomberg) - Nov. 19 (Bloomberg) -- Mortgage applications in the U.S. dropped last week as demand for home-purchase financing slumped to an almost eight-year low. The Mortgage Bankers Association?s index of applications to purchase a home or refinance a loan fell 6.2 percent to 398.6 for the week ended Nov. 14, from 425 the prior week.
Mortgage applications drop in week (Moldova.org) - The volume of applications for U.S. mortgages decreased last week, falling by a seasonally adjusted 6.2 percent, an industry group said.The Market Composite Index, which measures mortgage loan application volume, fell 6.2 percent from 425 to 398.6 in the week ending Nov. 14, the Mortgage Bankers Association said in a release Wednesday.The Refinance Index increased, however, up 2.6 percent to ...
HDFC Avoids Subprime Folly With $30,000 Mortgages, Strict Rules (Bloomberg) - Tighter guidelines than at U.S. lenders means Indian mortgage companies aren't as vulnerable in a slowing economy, Mistry said in an interview in Mumbai yesterday.
U.S. tries new tack on mortgage program (CNNMoney.com via Yahoo! Finance) - The Bush administration said Wednesday that it was changing its nearly-moribund mortgage rescue plan in an effort to spark more lenders and homeowners to participate.
Home-loan applications at slowest since 2000 (Providence Business News) - APPLICATIONS TO REFINANCE accounted for 49.9% of home mortgage filings last week, up from 45.1% in the week ended Nov. 7 and 42.9% of applications in the week ended Oct. 31 the MBA found.
Japan Stocks Decline, Led by Financials, on Bad-Loan Concerns (Bloomberg) - Nov. 19 (Bloomberg) -- Japan stocks declined, led by financial companies, on concern the nation's drop into recession will lead to an increase in bad-loan costs.
Mortgage applications near 8-year low, although rates slip (USA Today) - Applications for home mortgages declined last week, with loans for purchases of single-family homes falling to their lowest level in nearly eight years, an industry group said Wednesday.
Japan Stocks Decline After MUFG Results Spark Bad-Loan Concern (Bloomberg) - Nov. 19 (Bloomberg) -- Japan stocks declined, led by banks, on mounting concern the nation's drop into recession will lead to an increase in bad-loan costs.
U.S. mortgage applications near eight-year low (The Globe and Mail) - Mortgage Bankers Association's seasonally adjusted composite index of mortgage application activity falls 6.2 per cent
|
