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From: ark@alice.UUCP (Andrew Koenig)
Newsgroups: net.consumers
Subject: Re: mortgage question
Message-ID: <3632@alice.UUCP>
Date: Tue, 23-Apr-85 16:38:23 EST
Article-I.D.: alice.3632
Posted: Tue Apr 23 16:38:23 1985
Date-Received: Wed, 24-Apr-85 04:21:08 EST
References: <69600023@hp-pcd.UUCP>
Organization: Bell Labs, Murray Hill
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John Eaton says:

>   Sorry about the confusion between 15 and 30 year loans. The article that I
> was refering to compared a $100,000 mortgage for current rates of 12.75 for
> the 30 and 12.25 for the 15. The payments on the 30 would be $1087 and the
> 15 would be $1217. The $130 difference would save you $172,260 (Before taxes)
> if you took the 15. I figured that a 12.75% loan for $100,000 paid off at
> $1217 a month would take 16.27 years for a difference of $18600.(before tax)

If the rates are different, that definitely changes the picture.
As I indicated, a 30-year loan is preferable to a 15-year loan
at the same rate.  Similarly, a 12.25% loan is preferable to
a 12.75% loan over the same term.

In this sort of situation, each individual must decide which
preference is worth more.