Buying a House By: Kaitlynn Delaney, Lindsey Mann, Aimee Morgan, Kevin Whitmer

 The 15 year mortgage is a better deal; it has a better rate and starting with the first payment, more money goes to the principle than to interest. This ultimately results in paying roughly 40% less interest than with a 30 year loan.  The number of payments paid on a 30 year loan for a $235,000 house before there is more coming off the principle than being paid in interest is 104.  With a 15 year loan, more is paid on the principle than in interest starting with the first payment.  Renting is usually a temporary situation, though it does have benefits.  Interest rates vary from bank to bank and day to day. Also, it is important to get a fixed rate, so that the interest rate does not increase during the length of your mortgage. Insights

Interest Rates Interest rates vary, so it’s a good idea to shop around before deciding on a Bank or Credit Union to work with.  America First Credit Union  30 year loan: 3.652%  15 year loan: 3.152%  America First Credit Union  30 year loan: 3.875%  15 year loan: 3.500%  University Credit Union  30 year loan: 3.250%  15 year loan: 2.625%   30 year loan: 3.313%  15 year loan: 2.687%

Renting VS. Buying  Positives:  If something breaks, you can call the landlord for repairs.  Other than the length of the lease, which is usually no longer than a year, there is not a long term commitment.  Negatives:  Monthly Payments go to Landlord.  Live by someone else’s rules.

Renting VS. Buying  Positives:  Monthly payments go towards your house.  Live by your rules.  Negatives:  If something breaks you must pay to get it fixed.  Long-term commitment to the mortgage company.

Conclusions  Mortgage payments should not surpass 33% of a families take home pay.  A 30 year loan may be tempting, but it’s almost easier to pay the 15 year loan, because while it’s more money each month, less is paid in the long run. And 15 years really isn’t that long of a time.  If someone has the ability, a 15 year loan is the way to go. In the long run, it will save thousands to tens of thousands in interest depending on the price of the mortgage.

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