No. of Recommendations: 0
I'm considering building a home.  While,
wealth wise, I might be better off
investing the extra money while renting,
there are emotional and psychological
reasons a home might be worth the
investment to me personally.  If you're
buying a home to retire in (not to sell),
then you might want to look at the numbers.

I crunched the numbers comparing a 15 year
mortgage to a 30 year mortgage, fixed rate.
The numbers are rounded off to the next
higher/lower dollar.  Total payment was
figured by multiplying 30 years x 12 months
x payment.  Here they are:

30 YEAR FIXED RATE MORTGAGE at 8 percent
(15 YEAR FIXED RATE MORTGAGE at 7.75 percent)

Amount           $100,000    $150,000    $200,000
Mo. Payment           734       1,101       1,468
(                     941       1,412       1,883)
Total payments    264,153     396,234     528,311
(                 169,430     254,144     338,859)
                  ________________________________
Savings with 15
year mortgage      94,723     142,090     189,452

Just food for thought:)


Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement