What are the pros and cons between a 15 and 30 year mortgage rate? Lets say you want to buy a house with 2,801 sqft, 4 bedrooms, with 2 bathrooms for a total of $560,000. You get the option of either choosing a 15 or 30 year mortgage. The 15 year mortgage offers you monthly payments of $3,325 and as you make your payments the total interest rate paid adds up being $150,507. Once everything is payed for the total is $802,271. Back with the 30 year plan, of $354,811 as the interest rate with monthly payments of $2,230 and the total adding up to $598,507.
Why some people are more likely to choose a 30 year plan over the 15? People have more payments other that just paying a house, that might be why more people would rather get the 30 year plan. Even though it ends up being more money at the end it is more flexible to be paying less every month. Than to have a high payment along with other payments. Over time you might get caught up, and that’s what ends up making people have a higher rate of losing their homes or become really indebt with loans.
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