15 vs. 30 Year Mortgage

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15 vs. 30 Year Mortgage

  1. 1. Which would you choose?
  2. 2.  What job?  Biomedical Engineer Where?  Dallas, Texas Average salary?  $49,483
  3. 3.  Can I afford the monthly payment for a 15 year mortgage?  15 year monthly payment - $1,245.50  My monthly salary - $4,123.50  Debt to income ratio - 30%  Can I afford it? -
  4. 4.  Can I afford the monthly payment for a 30 year mortgage?  30 year monthly payment - $845.49  My monthly salary - $4,123.50  Debt to income ratio - 21%  Can I afford it? -
  5. 5.  Which mortgage suits you best?  Being a early employed Biomedical Engineer, I will most likely be in debt from college loans and other payments  This is why I believe the 15 year mortgage is my best choice Why?  Having pre-existing payments, I think choosing the 15 year mortgage will help benefit me from spending many more years paying off my loans  Even though my debt to income ratio is smaller with the 30 year mortgage (21% to 30%), the 15 year mortgage is much more appealing due to the shorter length of the loan.
  6. 6. Lifetime Interest Paid15 years: $66,695.1030 years: $146,883.32 $160,000.00 $140,000.00 $120,000.00 $100,000.00 $80,000.00 Lifetime Interest Paid $60,000.00 $40,000.00 $20,000.00 $0.00 15 Years 30 Years
  7. 7. 15 years: $223,695.10 Total amount paid30 years: $303,883.32 $350,000.00 $300,000.00 $250,000.00 $200,000.00 Total amount paid $150,000.00 $100,000.00 $50,000.00 $0.00 15 Years 30 Years
  8. 8. Extra $10015 years: $7733.4330 years:$35048.35 $40,000.00 $35,000.00 $30,000.00 $25,000.00 Extra $100 $20,000.00 $15,000.00 $10,000.00 $5,000.00 $0.00 15 Years 30 Years
  9. 9. 15 years: $426237.5530 years: $87921.09 Extra $500 100% 90% 80% 70% 60% Extra $500 50% 40% 30% 20% 10% 0% 15 Years 30 Years

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