The document compares the costs and benefits of a 15-year mortgage versus a 30-year mortgage for a biomedical engineer in Dallas, Texas earning $49,483 annually. It finds that while the monthly payments would be lower with a 30-year mortgage, the 15-year mortgage would result in paying off the loan much sooner, saving $80,000 in lifetime interest paid and allowing the person to direct extra funds to paying down other debts faster. Therefore, the 15-year mortgage is recommended as the best option.

1. Which would you choose?

2.  What job?
 Biomedical Engineer
 Where?
 Dallas, Texas
 Average salary?
 $49,483

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.  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.  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. Lifetime Interest Paid
15 years: $66,695.10
30 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. 15 years: $223,695.10 Total amount paid
30 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. Extra $100
15 years: $7733.43
30 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. 15 years: $426237.55
30 years: $87921.09 Extra $500
100%
90%
80%
70%
60%
Extra $500
50%
40%
30%
20%
10%
0%
15 Years 30 Years