A payment on a 40 year loan, if it is a fixed-rate loan, will be smaller, provided all other factors like loan balance and interest rate are the same. If you are talking about an adjustable rate loan, well, your payment will vary on your interest rate more than how long the loan term is. A 40 year loan will pay-down your loan slower, meaning at 10 years, you'll owe more on a 40 year loan than a 30 year loan. You may also pay more towards interest on a 40 year loan.
It depends on the interest rate and loan term. For a 4.5%, 30 year mortgage the payment would be: $2,533.43 If you did a 15 year mortgage at the same 4.5%, the payment would be: $3,824.97
It depends on the interest rate and the length of the mortgage. For a 30 year mortgage at 4.5% the payment would be $172.27. If you can afford it, a 15 year mortgage at 4.5% would be $260.10 but would save you about $16,000 in interest.
If I send in an extra payment a year or 2 extra payments a year how much time would that knock off my 30 year mortgage?
Yes, but it would be better if you can divided the extra payment into each mortgage payment through the year instead of waiting until the end of the year to make one extra payment because you will be lowering the principal as the year progresses which lowers the interest accrued.
1 extra mortgage payment..principal & interestcan lower your term to about 19 years.
A fixed rate mortgage is a loan to buy a house and/or property in which the interest rate charged is 'fixed' or does not change. For instance, if you take out a 30-year fixed rate mortgage, you will have the same interest rate for the first payment as you will for the last payment, 30 years later.
If ones mortgage rates happen to be lower then expected, the monthly payment will actually go down with refinancing a mortgage. If a homeowner is in the position to make a monthly payment that is higher than usual, the homeowner may want to think about switching from a 30-year mortgage to a 15 year mortgage.
If one is looking to take a 30 year mortgage, the preferred way would be a 30 year fixed mortgage. The benefits of a 30 year fixed mortgage is a fixed payment so one knows what the payment will be over the 30 year period. Some other benefits are building equity and increasing ones cash flow.
I don't think there is a such a thing as an average mortgage payment on any given dollar amount. The principal and interest payment depends on several factors besides the loan amount, primarily the interest rate and loan term(length of the loan). To keep it simple, a 130,000 mortgage at 4.5% for 30 years would be $658.69 for your principal and interest payment. If you could afford to do a 15 year loan, at the same interest rate, the monthly payment would be $994.49 and you would save nearly $60,000 in interest. If you change the interest rate, the payment could change significantly also.
It depends on how much money you are making. If you can comfortable afford to pay for a 15 year mortgage then you should do this. If you are going to be struggling to make the mortgage payment then you should get a 30 year mortgage.
22.5 years
For a 30-year loan, the monthly payment will be $1,266.71