Comprehensive Financial Solutions, Inc.

440-343-4223

Lifestyle Read Time: 4 min

Lots of Variables with Fixed-Rate Mortgages

When selecting a fixed-rate mortgage, a prospective borrower has to determine how many years to finance the loan. Some financial institutions offer 10-year and 20-year, fixed-rate mortgages as well as 15-year and 30-year, fixed-rate home loans.

For the purpose of comparison, this worksheet takes a look at 15-year and 30-year, fixed-rate loans.

The payments on a 30-year mortgage are generally lower than 15-year loans, but their interest rates tend to be higher. The lower payment comes from spreading out the loan over twice as many payments. Because of the longer timeframe, a 30-year mortgage owner pays more in interest payments than a 15-year mortgage holder.

15 Years vs. 30 Years

A 15-year mortgage is paid off twice as quickly as a 30-year mortgage, which may allow the home buyer to build equity at an accelerated rate. The payments on a 15-year loan are higher – but they aren’t usually twice as high – as a 30-year loan.

To get a better idea of the differences, take a few minutes and add some numbers to the accompanying worksheet.

Worksheet

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

Choosing a Business Structure

Choosing a Business Structure

Entrepreneurs all face the same question, “Which business structure should I adopt?”

The Pros and Cons of Banking Your Money

The Pros and Cons of Banking Your Money

The Pros and Cons of Banking Your Money

Ideas to Redirect Your Spending Fast

Ideas to Redirect Your Spending Fast

In her virtual manifesto on the spending fast, “My Year of No Shopping,” author Ann Patchett discovered that, “The unspoken question of shopping is ‘What do I need?’ What I needed was less.”

 

Have A Question About This Topic?







Thank you! Oops!

Five Most Overlooked Tax Deductions

Five overlooked tax deductions to help manage your tax bill.

Four Really Good Reasons to Invest

There are four very good reasons to start investing. Do you know what they are?

Recognizing the Challenges of Custodial Care

The goal for most, when planning for retirement, is to ensure financial independence and never run out of money.

View all articles

Impact of Taxes and Inflation

Estimate the potential impact taxes and inflation can have on the purchasing power of an investment.

How Compound Interest Works

Use this calculator to better see the potential impact of compound interest on an asset.

What Is My Life Expectancy?

Estimate how many years you may need retirement assets or how long to provide income to a surviving spouse or children.

View all calculators

Protecting Those Who Matter Most

The importance of life insurance, how it works, and how much coverage you need.

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

View all presentations

Investments

You’ve made investments your whole life. Work with us to help make the most of them.

Charitable Giving: Smart from the Heart

Do you have causes that you want to support with donations?

What to Do When You Lose Your Wallet

Ever lost your wallet? Frustrating. Here’s what you can do to keep yourself safe.

View all videos