Printable-Mortgage-Charts.com > Longer Terms Drive the Total Interest Way Up
A longer term makes the payments lower. However, it also make for much higher total interest.
These charts all show a $100,000 mortgage at 6%, with the term ranging from 15 to 50 years.
As the term grows from 15 to 30 years, the total interest paid balloons from $51,894 to $115,838. If, God forbid, you extend the term to 50 years, the total interest explodes to $215,843.
It is true that the monthly payments are lower with a longer term. Extending the 15 year term to 30 years drops the payment from $844 to $600. However, that is a short-sighted consideration given the enormous rise in total interest. The lesson here is Keep the term as short as possible.
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