SOLUTION: In terms of paying less in interest, which is more economical for a $90,000.00 mortgage: a 30-year fixed rate at 9.5% or a 15 year fixed rate at 9%. How much is saved in interest.

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Question 321662: In terms of paying less in interest, which is more economical for a $90,000.00 mortgage: a 30-year fixed rate at 9.5% or a 15 year fixed rate at 9%.
How much is saved in interest.
The buyer will save interest approx.: ______
Your help is greatly appreciated.
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
Interest on a 30 year loan at 9.5% per year would be equal to $182,436.76

Interest on a 15 year loan at 9.0% per year would be equal to $74,311.19

The total interest you pay for the 30 year mortgage is substantially more than the total interest you pay for the 15 year mortgage.