Tiffany and Jason want to obtain a $72,000 mortgage. Their payments would be $730 for a 15-year mortgage and $579 for a 30-year mortgage. What would be their total savings in interest by using a 15-year mortgage?

Question

Quizplus · Accepted Answer

The total cost of the 15-year mortgage is $730 * 12 months * 15 years = $131,400. The total cost of the 30-year mortgage is $579 * 12 months * 30 years = $208,440. The difference, or total savings in interest by using a 15-year mortgage, is $208,440 - $131,400 = $77,040.

Tiffany and Jason Want to Obtain a $72,000 Mortgage