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    • 03 JAN 17
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    15-Year vs. 30-Year Mortgage Loan

    15-Year vs. 30-Year Mortgage Loan

    The home buying process is full of difficult decisions: which Realtor to go with, which lender to choose (psst…Home Team Lending!), how large of a down payment you can afford, which color of drapes to hang in the dining room, the list goes on. One of the most pressing decisions is whether to opt for a 15-year mortgage loan or a 30-year mortgage loan.

    When deciding on what mortgage loan to get when buying a home or refinancing, many people are unaware how much of an impact the length of the loan can make and opt for the most popular, 30-year loan. For example, a 15-year mortgage loan will save you ample dollars compared to a 30-year mortgage loan.

    Let’s break it down: 

    30-year mortgage loan

    $200,000 home

    30-year mortgage loan

    3.75 percent interest rate

    Monthly payment: $926 (in principal and interest)

    TOTAL: $333,443

    15-year mortgage loan

    $200,000 home

    3.25 percent interest rate (shorter loan term equals lower interest rate)

    Monthly payment: $1,405

    TOTAL: $252,900

    Therefore, in this example the 15-year mortgage loan would save you $80,543 over the life of the loan! That’s about the cost of three small cars. At the end of the day, it is certainly worth the difference in payment per month of $479 in our opinion. However, every family’s financial situation is unique, and there are some benefits to a 30-year mortgage. For example, if you opt for a 30-year mortgage, you could take that extra $479 per month (not a small chunk of change) and put it toward your children’s college fund, car payments, etc.

    Home Team Lending is here to help you decide which mortgage route is best for you and your family. Currently have a 30-year mortgage? Consider refinancing into a 15-year! Give us a call at 970-336-1185 to discuss your options today.

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