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interest paid at payment number 1. For a 30 year mortgage it happens much later at
payment number 160.
3. The 15 year mortgage compared to the 30 year mortgage with an extra
payment: $ 61,220.44 to $ 136,728.96. The Bank interest rate for a 30 year loan is 0.75%
higher than the 15 year loan. The interest paid for 30 year loan is $ 104,111.63 higher
than the 15 year loan, that amounts to 170% more than 15 year interest.
4. The 15 year mortgage compared to the 30 year mortgage with a large enough
extra payments to save 15 years and have the loan paid off in 15 years: With the extra
payment of $100 a month, you still pay interest of $ 136,728.96 which is
still higher than 15 year interest.
PMT = P x (APR)
= $ 222,000 x 0.04125
n
12
__________________
______________________
- ny]
[1-(1+ APR)
n
- 12 x 15]
[1-(1+ 0.04125)
12
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The other factors that must be considered when buying a mortgage are:
Credit score, property tax, home owner insurance, fixed mortgage rate vs. adjustable
mortgage rate, tax benefits, finding a lender that can offer a mortgage loan with the right
terms, the rate and features which you are looking for, the funds available for closing
costs. Others things to consider when buying a home are location, travel time to work,
schools for the kids, church, recreation centers for activities, the safe environment of the
neighborhood and HOA fees, as well as future home repairs.