Compounding interest is a funny thing over the long-term. A 30-year fixed at 2.5% has you paying $42,244 in interest per $100,000 borrowed. A 40-year fixed at the same rate would have you pay $58,294 in interest ... 38% more! The only benefit you get is reducing your payment by $65 a month per $100,000.
Compounding interest is a funny thing over the long-term. A 30-year fixed at 2.5% has you paying $42,244 in interest per $100,000 borrowed. A 40-year fixed at the same rate would have you pay $58,294 in interest ... 38% more! The only benefit you get is reducing your payment by $65 a month per $100,000.
And if you really need to save $65/month per $100,000...you need to buy a dramatically smaller house, not get a longer mortgage.
And if you really need to save $65/month per $100,000...you need to buy a dramatically smaller house, not get a longer mortgage.
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