Question

To see which mortgage is better 15 or 30 year , what do I multiply?

Answer 1

To find the total amount paid for the 15-year mortgage, we will multiply the payments by the number of payments. They would have to pay 12 payments per year for 15 years.

`786.55(12)(15)=141579`

We will do the same for the 30-year mortgage

`543.77(12)(30)=195757.2`

If we subtract the two amounts, we will get

`195757.2-141579=54178.2`

Therefore, they would be able to save $ 54 178.20 if they chose the 15-year mortgage.