Posted on December 2, 2010.
Option A = pay 20% of purchase price as deposit and borrow at The Rest fixed rate of 5.4% APR for 20 Years
Option B = Pay 25% deposit and borrow The Rest at a fixed rate of 4.8% APR over 25 years
Claud Waychoff says...
google mortgage ammortization schedule
Start your answer with an example like a $200,000 house.
You will probably come out even in costs at the end of those two mortages.
But, please add to your answer at the bottom that if you get option B with the lower interest rate, you can always pay off the house early and come out ahead.
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Posted on December 4, 2010
