Question

For a 30 year mortgage of $100,000 at 6%, you will pay $116,000 in interest over the life of the loan. for a 15 year mortgage of $100,000 at 6%, you will pay $52,000 in interest over the life of the loan. how much less are you paying in interest with the 15 year mortgage?

Answer 1

The solution to the problem is as follows:

In here, we'll just do some simple arithmetic to solve for the required value.

Given: 30yr = $116,000; 15yrs = $52,000

Asked: how much less are you paying in interest with the 15 year mortgage? (30yr - 15yrs)

Solution and answer:

Difference = 30yrs - 15 yrs = $116,000 - $52,000 = $64,000

Therefore, you will pay $64,000 less in the interest in a 15 year mortgage than a 30 year mortgage.

Answer 2

$64000

Explanation:

For 30 year mortgage of $100,000 at 6%,

Payment of interest = $1,16000

For 15 year mortgage of $100,000 at 6% ,

Payment of interest = $52,000

Difference between the 30 year mortgage and 15 year mortgage

= (1,16000-52000)

= $64000

Hence, the amount paid less in 15 year mortgage = $64000