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The Benefits of Doing a 15 Year Mortgage

Posted on January 2, 2018 · Posted in Uncategorized

Hello everyone, my name is Ramazan Sinani, a Residential Mortgage Loan Officer at Northeast Financial of Middletown, Connecticut. Today I would like to talk to you about the benefits to doing a 15 year mortgage!


Everyone always looks at the short term costs of getting a loan, such as the amount of the monthly payments. And they always argue that the payments would be higher by going to a shorter-term mortgage. And there is no denying that the monthly payment would be higher…. BUT…. Compared to a 30-year mortgage with lower monthly payments… are you TRULY saving money like you think you would? The answer is NO! In addition to that, your rate would be lower with a 15 year mortgage compared to a 30 year mortgage! Here is a scenario (the rates used below are just an example):


$250,000 Loan 30 years with a 3.85% Interest Rate
Monthly Payments – $1,193.54
Amount paid over 30 years- $429,673.77
Total Interest paid – $179,673.77


$250,000 Loan 15 years with a 3.25% Interest Rate
Monthly Payments – $1,756.67
Amount paid after final payment – $316,200.95
Total Interest paid – $66,200.95


Clearly you can see that in this scenario you’ll be saving $113,472.82 in interest payments when choosing a 15 year mortgage! That’s a lot of saving! The only reason your monthly payments are larger in a 15 year mortgage is actually a good thing… you are putting double the equity into your home and less interest paid to the lender, per month!


For more details on a 15 year mortgage or any consultation regarding a mortgage, please contact me and I will be very happy to assist you!

Thank you for your time!



Ramazan Sinani
Mortgage Loan Originator
Northeast Financial
NMLS: 1590862 Company NMLS: 117273
Cell: 203-695-6858 Fax: 203-413-6240