Let's do the numbers: Comparing
interest rates Julie GartonGood, GRI, DREI
If you're wondering whether to refinance back intoanother
thirtyyear loan or try to bite the bullet with a largerpayment on a
fifteenyear loan, here's some information to helpyou decide.
The following table illustrates a $100,000 mortgageat 8.5%
interest as paid to maturity under five different loanterms. Although the
payment difference between the 30 and 15yearloans is $216, the interest saved
over the term of the loan is$99,556!
The answer? If you can swing the payment differentialbetween
the two loans, you'll not only be saving a tremendousamount of interest, but be
building equity at a quicker pace aswell!
Months 
Loan term 
Monthly Payment 
Loan term 
Total Cost 
Total Interest Paid 
30 years 
$ 769 
360 
$276,809 
$176,809 
20 years 
$ 868 
240 
$208,278 
$108,278 
15 years 
$ 985 
180 
$177,253 
$ 77,253 
10 years 
$1,240 
120 
$148,783 
$ 48,783 
The difference in the repayment amounts is staggering!Make
sure you discuss these options with your lender before yousign on the dotted
line.
Realtor® is a registered trademark of theNational
Association of Realtors
