Who would you rather have $84,000 of your money?? You or the bank? It’s a good bet the answer is you! Well, if you can swing a 15-year mortgage instead of a 30-year loan, that’s about how much you’ll save on a $100,000 mortgage. Let’s break it down. A 30-year mortgage frees up a lot of your cash each month. At seven and a quarter percent interest, your base monthly payment would be $682. Okay--now let’s figure what you’d spend paying off that 100-thousand dollar loan in half the time. 15-year mortgages give you a break on interest rates, usually about a quarter of a percent. But even at seven percent interest, your payment would be 200 dollars a month higher - $899. Short term—you’ll have less cash in your pocket. But, long term--you save $84,000 in interest you would have paid your lender! And, even if you move before you pay off the loan, your equity will have increased dramatically.

So if you sell in five years, you’ve decreased your loan balance 17- thousand dollars more than if you had a 30- year loan. Before you sign up for a 15-year mortgage, consider this: that extra $200 a month could be much more profitable if carefully invested. So, examine your options and consult with a financial expert, and determine the best place for your hard-earned cash.