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Despite significant savings, few takers for 15-year mortgages.

Publication: Mississippi Business Journal
Publication Date: 18-FEB-08
Format: Online
Delivery: Immediate Online Access
Full Article Title: Despite significant savings, few takers for 15-year mortgages.(Focus: Real Estate Quarterly)

Article Excerpt
Would you rather have a $100,000 home paid for in 15 years with total interest payments around $52,000? Or would you rather take 30 years to pay for that same home and have total interest payments of $121,656--more than you paid for the house?

Despite obvious advantages to taking out short-term loans, some banks report that very few homebuyers go for the shorter-term loans. Most people take the option of lower payments for a longer period of time in order to finance their home.

For a $100,000 loan at 6% interest, a 15-year loan's monthly payment would be $846.86 for...

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