It has been a tedious task to judge which way to go a 15yr or a 30 yr Mortgage. This comparative analysis is surely going to help you in taking the right decision.
|
15yr Mortgage |
30yr Mortgage |
Monthly Payments |
Large monthly payments |
Lesser Payments |
Term |
Short- 15 Yr |
Long 30Yr |
Interest Rate |
Lower |
Higher |
Total Costs |
Low costs |
High overall costs |
Equity |
Builds equity faster because more of each payment goes toward principal rather than interest |
Slowly builds the equity |
Contribution to Principle |
Each payment goes toward principal rather than interest |
Less contribution to principle |
Tax Benefits |
Minimal Tax deductions |
Larger tax deductions |
Advantages |
help buyers own their homes sooner |
Wait until it is all yours |
Disadvantages |
- Higher payment leaves the borrower with hardly any money to save each month
- Even a minor family or financial emergency could cause major problems.
|
- Lower monthly payments, more savings.
- Contingencies can be met easily.
|
Use this calculator to compare these two mortgage terms, and let us help you decide which term is better for you. This Financial Calculator requires a Browser with Java Support.
