The 30 -year mortgage rate is \(6.25 \%\).

a. Find the payment.

b. Determine the total that would be paid if the mortgage was completed.

c. Find the cost of financing for this mortgage.

Fifteen-year mortgage compared to 30-year mortgage. A 15-year mortgage comes with advantages, the biggest being the home is paid off much sooner, and equity is built much more quickly. Mortgage interest rates are often higher for 30 -year mortgages than 15 -year mortgages. However, the payments for 15 -year mortgages are considerably higher. The following exercises explore the difference between a 15 and 30 -year mortgage for a mortgage of \(\$ 200,000\).