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Answers (4)
- IloveNewYork
- Contributions:21
Hi, You are right, it wouldn't make that much of a difference, I see now. Thank you for your replies!
- IloveNewYork
- Contributions:21
Hi y
- ConnieK_Oklahoma
- Contributions:2899
well i was pretty much going to say the same thing that Carl said. a 40 year loan would be such a bad idea, you'd save a few dollars a month but spend 10 extra years paying a full payment.
to give it real numbers. if your loan was for $150,000 at 5.5% for 30 years your payment would be in the neighborhood of $850 a month, if you stretched it out to 40 years it would drop to approx $775 a month- so you'd save $75 a month but spend $70K more for that house. (total on the 30 yr loan looks to be $306K but $371K on the 40.
it's late and those numbers seem awfully big but that's how mortgages work. I might have made a math mistake so they might not be exact but the difference still is close- as i did the same math both times so the gap is ,the same.
What is amazing is if you SHORTEN that loan to 15 years, they payment went up to about $1225 but the total expense dropped to about $220K so...if a person just bought a bit cheaper house and paid it off quicker...it would be far easier to manage and save LOTS OF MONEY in the long run.
to give it real numbers. if your loan was for $150,000 at 5.5% for 30 years your payment would be in the neighborhood of $850 a month, if you stretched it out to 40 years it would drop to approx $775 a month- so you'd save $75 a month but spend $70K more for that house. (total on the 30 yr loan looks to be $306K but $371K on the 40.
it's late and those numbers seem awfully big but that's how mortgages work. I might have made a math mistake so they might not be exact but the difference still is close- as i did the same math both times so the gap is ,the same.
What is amazing is if you SHORTEN that loan to 15 years, they payment went up to about $1225 but the total expense dropped to about $220K so...if a person just bought a bit cheaper house and paid it off quicker...it would be far easier to manage and save LOTS OF MONEY in the long run.
- Carl Henker, "Carl Henker"
- Contributions:755
No a 40 year is not offered. Even if you use a 40 year loan your payments will not be much less than a 30 year. A 40 year loan will have a higher interest rate keeping the payments about the same.
Is there such a thing as a "40 year" 203K loan?
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