Q: What about a 15-year vs. 30 year loan?
A:  The difference in payments and overall savings between a         15-year fixed-rate loan and a 30-year fixed-rate loan depends on the    interest rate and the loan amount.  Using a $100,000 loan and 7.25%    interest rate as an example, monthly payments on the 15-year note would be $912.86.  Monthly payments on a $100,000 loan at 7.25% fixed for 30 years would be $682.18.

The 15-year note offers the opportunity to save considerable money over the life of the loan, since the period of amortization is half that of the 30-year note.  This means that the total interest paid on a 15-year note as compared to a 30-year note is significantly less.

However, calculating the overall savings of the 15-year note over the
30-year note depends on several individual circumstances, such as the borrower's changing income status.

Q: What about splitting my mortgage in two and paying bi-weekly?
A: Some people set on paying off their home loan early and            reducing interest charges opt for a biweekly mortgage.  Monthly        payments are divided in half, payable every two weeks.                                     
                                                                                                                      Because there are 52 weeks in a year, the program results in 26        half-payments, or the equivalent of 13 monthly payments per year       instead of 12.  Using the biweekly payment system, a homeowner with a $70,000, 30-year biweekly mortgage at 10 percent interest could save $60,000 in interest and pay off the balance in less than 21 years.

Q: Are 40-year mortgages a good idea?
A: Smaller monthly payments are the primary advantage of adding 10 years to the traditional 30-year mortgage, but real estate experts say the shorter-term loan usually is more beneficial for the home buyer.  The drawback becomes apparent simply by calculating the cost of     additional interest payments, which can total thousands for a few      dollars difference in mortgage payments.