Consider the situation where you are in love with the perfect house. You have two options: A 30-year mortgage at 4.26% or a 15-year mortgage at 3.35%. You must borrow $200,000. Address these points in your post:
Which loan has the lowest monthly payment?
Which loan has you repaying the most money?
Which loan would you choose and why?
How would the monthly payment and interest repaid change if you made one extra monthly payment at the end of the year? (In other words, you decrease the principal by the amount equal to one monthly payment)
