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 (Mortgage Relief Solutions )
Save Thousands with a Shorter-Term Mortgage
MARCH 06, 2013Jennifer Berry, Yahoo HomesIf you can afford to pay more per month for a shorter-term loan, you could save big bucks in the long run since you'll be paying less in interest over the life of the loan.
And to show just how much you could save, we compared a 15-year fixed-rate mortgage with a 30-year fixed-rate mortgage on a $250,000 loan:
30-year fixed mortgage
Interest rate*: 3.625 percent
Monthly payment**: $1,140.13
Total payments made: $410,446.17
Total interest paid: $160,446.1715-year fixed mortgage
Interest rate*: 2.750 percent
Monthly payment**: $1,696.55
Total payments made: $305,379.74
Total interest paid: $55,379.74
Savings over the life of the loan vs. 30-year: $105,066.43Read more: Yahoo Homes
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