After a promotion at work and in the past 5 years a growing family, it is decided that you need more space. After searching for 4 months you find the home of your dreams. You make an offer and after a few rounds of negotiating it is accepted.

The purchase price is $625,000. You have enough to put 20% down to avoid PMI, the rest will be financed. After working with your banker, he quotes you two rates that are comparable (no points) in all aspects except term length and rate. The 30-year rate is 4.75% and the 15-year is 3.90%.

What is your monthly payment under both scenarios? Which do you choose? Why?  

Answer rating: 100% (QA)

Assuming a loan amount of 500000 625000 20 down payment and using an online mortgage calculator For ... View the full answer