What is the difference between long-term fixed mortgage and short-term fixed mortgage? I was given this two options in the credit union and I can’t seem to choose between the two. I am buying a house because my extended family is getting bigger our apartment is getting smaller for us. I have save some money but just in case it’s short I will resort to this credit union.
Re: Loan Question
I believe longterm is 30 yrs mortgage while shortterm is 15 yrs. The interest will vary inverse proportionally.
But I'll let the gurus take the mic here. @Southie @Captain1
Re: Loan Question
or SindSagar!
15 yrs @ 3.25% you pay $26,480 in interest; 30 yrs loans have higher interest, @4.00% you end up paying $71,870 in interest!
15-year mortgage or 30-year mortgage?
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Re: Loan Question
Thanks :k:
Re: Loan Question
15 Year... is best option if you can afford 700 monthly payment.... longer the period.. you pay more interest.... shorter period... less interest and you are paying more toward capital....
Re: Loan Question
:k:
At same time, if you read the text it says 30-year mortgage will cost you $225 less in this case. So it is upto the OP to see whether they want to pay off loan quickly and pay less interest but at same time higher monthly payment or pay less monthly now but pay it for longer term and paying more in interest.