Maryland 15 Year Mortgage Learning Centre
The benefits to utilizing a 15 year mortgage are great, reduced interest rates, documents and appraisal requirements can make a 15 year mortgage perfect for those trying to cut down on the total cost of the interest financing.
- Example of a 15 year mortgage versus a traditional 30 year mortgage for prinicpal and interest only.
- Based on a $200,000.00 purchase price with 20% down and a financed amount of $160,000.00
Principal & Interest payment
- 30 year based on 4% principal & interest at $763.86 per month
- 15 year based on 3.5% principal & interest at $1,143.81 per month
In this example the 15 year mortgage is .5% lower in rate and the monthly payment is higher than the 30 year payment by $379.95 per month. You save $91,609.00 in interest over the life of the loan. The interest rates on 15 year loans are also normally .5% lower as well.