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?

Question

Mathematics

Branson Kerr

31 May, 06:36

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?

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Answers (1)

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Kyla Green · 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.