Sarah fields wants to borrow 121000 at 65 to buy a house How

Sarah fields wants to borrow $121,000 at 6.5% to buy a house. How much interest would she save by going with a 15 year mortgage over a 25 year mortgage

Solution

Loan amount = 121000

Rate of interest = 6.5

Let us compare interest for 15 years and 25 years

For 15 years :EMI = 1054

                      Interest amount = 68727

For 25 years:EMI = 817

                      Interest amount =124100

Interest saving 124100 -68727 = 55373 $