Financing in Deptford>Question Details

Jackie Traki…, Home Buyer in 08260

I would like to compare a 30 year mortgage on a loan of 192,592 at 5% to a15yr loan at 4.735%. If I pay extra on the principal of the 30 year loan

Asked by Jackie Trakimas, 08260 Sun Apr 3, 2011

how many years would it take to match the rate on the 15 year mortgage and how much extra per month?

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Below are the payments for each loan:

30 year fixed rate at 5% - $1033.88 prinicipal & interest payment
15 year fixed rate at 4.735% - $1495,55 principal & interest payment

You can reduce a 30 year mortgage by several years by paying extra every month. The rate will stay the same, but you do have the flexibility of paying the extra $360 more or less a month or not.

You can also ask the bank to set you up on a bi-monthly payment, which will also reduce the number of years to repay. There is a monthly fee for that, but it might be worth it to you. They do require an automatic draft 2 times a month from your account. Some people prefer this to the 15 year.

I retrieved these figures from my local MLS website.

Call your lender for details about any of these loans.
0 votes Thank Flag Link Sun Apr 3, 2011
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