Q: Ever wonder why both banks and politicians when talking mortgage reform, are always pushing the 30 year mortgage?
A: Bank Lobbyist
Why? Because the banks make approximately 70% of the interest charged during the first 15 years of the 30 year loan term.
Equate that with real numbers with a $200,000 loan balance, 4.5% interest rate, 30 year term and a monthly payment of $1,013. You'll pay $114,875 in interest charged over the first 15 years of your loan.
Compare that with a 15 year term at the same rate (though usually lower by .50% - .625%) and you'll pay only $75,397 in interest charged - BUT your loan will be PAID OFF!
If you would like us to calculate your savings, just ask for a free no obligation mortgage analysis when you call 801-318-4047