Observations and Reflections: Group Project 2

Paige Pearson
1) 15 year payment is more @ 552.97 Absolute and Relative is
59.8% more than 30 year.
2) 15 year is cheaper than the 30 year by $66,814.20 is the
absolute and 20.08% is the relative.
3) 15 vs. 30 with extra payment
30 year is $313,120.99, 15 year is $26,5883.40
Absolute $47,237.59 Relative 15.09%
15 year is still less than the 30 year.
4) 15 vs. 30 with $590 extra
PMTS
15 years-$1477.13, 30 years-$1514.16
Absolu
te $37.03 Relative 2.44%
INT
15-$46,683.46, 30-$53,257.05
Absolute $66,573.59 Relative 12.34%
15 year is still cheaper than the 30-year mortgage with the high
increase of payments.

From our observations, I found that having a 15-year mortgage

would be the best option to finance your home. This project has also
taught me how important it is to check thoroughly for competitive
rates, because it can ultimately make a substantial difference in your
payments. In addition to this, if your down-payment is larger, choosing
to pay a higher monthly payment will help pay your loan off quicker
and at a lesser interest rate, which ultimately allows you to save more
money.
Things that were not necessarily discussed in this project can
also have an effect on the amount of payments. Factors like interest

rates, non-fixed rates, and other fees can effect and change your
payments too. There are aspects that influence people to choose a 30year loan instead of a 15-year loan, such as losing employment,
receiving pay cuts, losing support from family or friends, etc. Having a
30-year loan vs. a 15-year loan means lower payments, and then if
possible, one might refinance to the 15-year loan option, when their
financial state allows them to make larger payments.