Chitika

Monday, June 6, 2011

How much is a $200,000 home?

So you are buying a $200,000 house, how much is it really going to cost? In our example we will look at two common mortgage loans and compare which is the better deal! You have to choose between a 30 year mortgage and a 15 year.

The 30-year mortgage has a fixed rate with a monthly payment of $1,074.
The 15-year mortgage has a fixed rate with a monthly payment of $1,505.

For the 30-year mortgage, the total cost of interest is $186,343.
For 15-year mortgage, the total cost of interest is $70,789.

Therefore, you would save $115,554 in interest cost by taking the 15-year mortgage!

 So what would you do with $115,554?

75 comments:

  1. Going with the 15-year mortgage is the best way and if I had that much money left over I would make myself a music studio :D

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  2. Wow I didn't realize a 15 year was only a few hundred more a month. Such a big savings.

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  3. too bad a 15 year mortgage isn't feasable in california with the high home prices here

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  4. That is an incredible amount of money, wow!

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  5. Thanks, I definitely won't forget those numbers!

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  6. Amazing how a 200k home can cost you 300k or more in the long run. It is really unfortunate that people take advantage of others. Thanks for the informative post!

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  7. Yeah, and with the 30-year mortgage (which most people chose) it's almost 400k! Yikes!

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  8. I'm not sure I'd want to live in the same house for 30 year and pay 186k $ interest.

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  9. Wow, no wonder the big banks are pushing 30 year mortgages.

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  10. Now I get this part of your living.
    Keep them comming!

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  11. Interesting, I would enjoy 115 grand.

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  12. good post very nice to see someone actually posting figures like this online =D

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  13. Thats alot of cash, Also great idea of Thenitefalls.

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  14. buy one big ass computer. hehe or more then 1.

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  15. Man when you break it down like this, who would ever go for the 30 year? (Guess it comes down to money :S)

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  16. We have 40 year mortgages here in Australia now...

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  17. wow this is insane!
    nice blog, keep it up ... followed!

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  18. That's amazing! Keep it up!

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  19. that is a lot of money in intrest!

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  20. lol 200000 with interests kills everything

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  21. those numbers are way 2 much for me

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  22. This new layout looks amazing firstly. :P

    Good post, thanks for the info. I would buy a pink army Jeep.

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  23. true but the payments are way more maybe someone like myself cant afford the 15 year mortage! hopefully though i can pay a little extra each month to not make it the whole 30 years

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  24. that's interesting, so much money wasted...I guess it depends on how much you make.

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  25. Wow, there sure are a lot of intricacies to consider when buying a house.

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  26. Yeah, you can save more on a 15 year mortgage but that's only if you can afford the payments :(

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  27. The 15 years one is much more better.Thank you!

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  28. 6 years into my 30 year ARM we are looking to lock in a 15 year fixed

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  29. very good information there man, can be very useful in the near future for me

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  30. 5.00% for the 15-year mortgage.
    4.25% for the 30-year mortgage.

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  31. wow, fairly good observation

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  32. Really informing post! Keep it up man

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  33. thats what they dont tell you when buying a house

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  34. That's such a difference, i would definetely go with the 15 year one.

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  35. 200k seems like too cheap of a home for my tastes

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  36. Thanks for the information. this will be a help to me.

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  37. 200k is quite cheap for a house isnt it?

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  38. God, annuities do wreck your income... 200k isn't that cheap for a house anymore, now that the bubble has burst. Gonna see lotsa good houses for 200k.

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  39. The only problem with this, is that in this economy people don't often make enough to pay thousands a month, and even if they did That's just the money they would save if they were already going to have it. So now the rich are just losing slightly less than they would anyways while the poor get poorer and live in apartments...

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  40. i'd buy another house and rent it :P

    +follow
    benf199105.blogspot.com

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  41. that extra 500 a month can be hard to come by

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  42. The economy is tough for prospective home owners at this point in time.

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  43. Some people I know are buying up rental properties in Arizona (we live in Canada, BC). Unfortunately here homes are some of the most expensive in all of Canada. Your average home is going to cost at LEAST $400k.

    I think the trick is to find a house with a rent-able basement suit that you can use to help with your mortgage.

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  44. Q: So what would you do with $115,554?

    A: I'd do two chicks at the same time

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  45. Houses aren't cheap.. at all. Not something you'd want to buy if you're still studying or don't have a decent income backbone to support you.

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  46. Very insightful comparison. I'd probably invest that 115K in something risk-free and profitable.

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  47. Woah, that a lot of money, never though that much

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  48. 70 thousand in interest? oh god..

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  49. Thats a pretty big difference, thanks for the heads up =)

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  50. Being smart about how to buy and finance a home can mean the difference between having a post-grad education and not!

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  51. If I had the money you mentioned though, I would just pay off my college tuition, get rid of a lot of stress...

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  52. this is stuff that they teach you in high school finance classes but many adults forget all about it and throw their money away

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  53. What would I do with the 115k... Buy another house!

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  54. I would get one of those fancy 115k haircuts. Yep.

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  55. with this amount of money i would buy a 315000$ house :)

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  56. hm didnt know bout this, really good writing!

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  57. lol trying for a 400 000 house seems impossible nowadays

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  58. great tip and with that extra 115 thousand id probably invest it in bitcoins nothing could possibly go wrong :)

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  59. 200 Grand is big money, but the house you can get for it..

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  60. Yeah getting minimum interest is always bad. always try higher, to save all that money. thanks for the good info

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  61. well, i'm not sure what sorta house you'd get with 200K, they're a minimum of 300K for a run down shack where in live and 400-600K for anything decent.

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  62. My dream is to take a loan, buy a house, pay that house off and pay off my debt, which will take some years. Then I'll rent it out while I live the good life in Thailand/some other country.

    :)

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  63. interesting, if only I had money for any kind of credits and mortgages :)

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