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What is a better choice a 15 or 30 year mortgage for new home?

Quick question:I am looking to get a new home and I hav a few options.Let me know if this makes any sense (using current interest rates) ......I can get a 180,000 mortgage over 30 years that would cost $175,000 in interest, or a 15 year about $75,000 in interest..The payments for the 15 are $1404 and 30 are $988, the difference is $416 a month......If were to put that extra $416 a month in a savings account at 3.3% interest, in 15 years it will be $96000 dollars, almost making up for the extra $100,000 you spend in interest..... I *think* this make sense but I'm having trouble wrapping my head around if it should count since I have to pay another 15 years after that.....What do you think? by leroyfromtx25 from Houston, Texas. Sep 17th 2009 Reply


Joshua Crater (Rate1st.com)
#204 ranked lender in California - 47 contributions

Well the general idea is that you would take that $96,000 out of the bank in 15 years and payoff your mortgage. If you can afford the 15 year fixed payment then I would have to suggest that. In fact if you would be interested we are currently offering a 3.875% on 15 Year fixed with a 3 point buydown, this would make your payment only $1,320 for the 15 Year Fixed and that would save you a huge amount in interest over the term of your loan. If you would like more details please contact us. Toll Free 1-877-728-3178 or Apply online at ww.Rate1st.com

Sep 17th 2009
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Gene Ayzenshtat (Mortgage Expert)
#1 ranked lender in Massachusetts - 8 contributions

If you can manage 15 yrs fixed options, it always the best option. The rate is lower, thus the interest you will end up paying will be less.

Sep 17th 2009
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