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?
Posted by at

75 comments:

  1. AnonymousJune 6, 2011 at 9:43 PM

    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. Skinny GuyJune 6, 2011 at 9:59 PM

    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. bb31June 6, 2011 at 10:06 PM

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

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  4. t30June 6, 2011 at 10:10 PM

    interesting comparison

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  5. HiFiJune 6, 2011 at 10:12 PM

    That is an incredible amount of money, wow!

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  6. supearmyJune 6, 2011 at 10:34 PM

    Thanks, I definitely won't forget those numbers!

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  7. Moto-GamerJune 6, 2011 at 10:40 PM

    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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  8. Finding Cheap HomesJune 6, 2011 at 10:47 PM

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

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  9. Filler of that spaceJune 6, 2011 at 11:06 PM

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

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  10. The HammerJune 6, 2011 at 11:07 PM

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

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  11. AnonymousJune 6, 2011 at 11:20 PM

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

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  12. Doc_WafflesJune 6, 2011 at 11:29 PM

    Interesting, I would enjoy 115 grand.

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  13. DolaJune 6, 2011 at 11:47 PM

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

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  14. MalkavianJune 6, 2011 at 11:50 PM

    Thats alot of cash, Also great idea of Thenitefalls.

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  15. Terminally IllJune 6, 2011 at 11:52 PM

    SIQ POST BRO!!!!!

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  16. AbandonedJune 7, 2011 at 12:04 AM

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

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  17. BradenJune 7, 2011 at 1:04 AM

    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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  18. Terminally IllJune 7, 2011 at 1:17 AM

    SIQ POST BRO!!!!!

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  19. JDOGMMAJune 7, 2011 at 1:36 AM

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

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  20. MagixxJune 7, 2011 at 1:39 AM

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

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  21. NeonJune 7, 2011 at 2:02 AM

    That's amazing! Keep it up!

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  22. LinksZeeJune 7, 2011 at 2:08 AM

    that is a lot of money in intrest!

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  23. pepsi_lover47June 7, 2011 at 2:12 AM

    lol 200000 with interests kills everything

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  24. DejchJune 7, 2011 at 2:18 AM

    those numbers are way 2 much for me

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  25. BarryBumflopJune 7, 2011 at 3:54 AM

    This new layout looks amazing firstly. :P

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

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  26. Blk JesusJune 7, 2011 at 4:33 AM

    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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  27. DesktoperJune 7, 2011 at 4:42 AM

    The price gap is ENORMOUS.

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  28. J.B.June 7, 2011 at 5:04 AM

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

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  29. DouglasJune 7, 2011 at 5:18 AM

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

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  30. AnonymousJune 7, 2011 at 5:24 AM

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

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  31. AnonymousJune 7, 2011 at 5:25 AM

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

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  32. BigMikeJune 7, 2011 at 5:49 AM

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

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  33. Speedy EdJune 7, 2011 at 6:05 AM

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

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  34. AlexanderJune 7, 2011 at 6:32 AM

    What is the interest rate?

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  35. Finding Cheap HomesJune 7, 2011 at 6:37 AM

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

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  36. cezaryJune 7, 2011 at 6:47 AM

    wow, fairly good observation

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  37. NoctisJune 7, 2011 at 7:06 AM

    Really informing post! Keep it up man

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  38. DvallejJune 7, 2011 at 7:31 AM

    thats what they dont tell you when buying a house

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  39. Jesse CrowsJune 7, 2011 at 7:34 AM

    it is a lot anywhere you go!

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  40. LightStandJune 7, 2011 at 8:16 AM

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

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  41. WhitelightJune 7, 2011 at 8:23 AM

    AMAZING info!

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  42. edJune 7, 2011 at 8:29 AM

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

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  43. DaveJune 7, 2011 at 8:47 AM

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

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  44. BreakingbrokersJune 7, 2011 at 8:55 AM

    200k is quite cheap for a house isnt it?

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  45. XenotothJune 7, 2011 at 9:10 AM

    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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  46. UnknownJune 7, 2011 at 9:23 AM

    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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  47. BenJune 7, 2011 at 9:29 AM

    i'd buy another house and rent it :P

    +follow
    benf199105.blogspot.com

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  48. The HammerJune 7, 2011 at 10:11 AM

    that extra 500 a month can be hard to come by

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  49. MikeJune 7, 2011 at 10:18 AM

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

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  50. brucewaldemarJune 7, 2011 at 11:01 AM

    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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  51. GarrettJune 7, 2011 at 12:06 PM

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

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

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  52. MikkoJune 7, 2011 at 12:15 PM

    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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  53. JohnJune 7, 2011 at 12:58 PM

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

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  54. Bunny HillJune 7, 2011 at 1:19 PM

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

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  55. 123June 7, 2011 at 2:46 PM

    70 thousand in interest? oh god..

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  56. Skankin_PeteJune 7, 2011 at 2:46 PM

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

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  57. VersionDoubleJune 7, 2011 at 4:57 PM

    nice blog, following you!

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  58. MetamorphictionJune 7, 2011 at 7:52 PM

    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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  59. UnknownJune 7, 2011 at 9:02 PM

    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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  60. KazarakJune 8, 2011 at 12:14 AM

    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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  61. BobJune 8, 2011 at 1:16 AM

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

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  62. Benji RadmanJune 8, 2011 at 4:59 AM

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

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  63. MoobeatJune 8, 2011 at 5:33 AM

    hrmnnn

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  64. freightblogJune 8, 2011 at 5:46 AM

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

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  65. jhonnyJune 8, 2011 at 9:55 AM

    hm didnt know bout this, really good writing!

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  66. pepsi_lover47June 8, 2011 at 10:24 AM

    lol trying for a 400 000 house seems impossible nowadays

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  67. MarkJune 8, 2011 at 12:58 PM

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

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  68. AlekseezyJune 8, 2011 at 1:05 PM

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

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  69. taioJune 8, 2011 at 1:44 PM

    si señor,great post

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  70. BevericeJune 8, 2011 at 1:45 PM

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

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  71. SilkJune 9, 2011 at 11:13 PM

    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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  72. AnonymousJune 9, 2011 at 11:21 PM

    A 200k home, is a 200k home.

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  73. baka1236June 11, 2011 at 1:32 AM

    agreed with necroticism

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  74. NorthernLadJune 11, 2011 at 1:21 PM

    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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  75. DEZMONDAugust 18, 2011 at 12:37 PM

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

    ReplyDelete

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