Home Loan The average home loan is a 30-year loan. There are different types of loans, but we will use a conventional fixed interest loan for this question. Assume you need to borrow $850,000 for 30 years at 5.87% interest.

How much is your monthly payment? (A)

How much did you pay to interest? (B) .

Hit the AMORTIZATION button, in what month, do you begin paying more of the payment to your principal paydown that to interest? (C) Meaning up until this point, of the payment, more goes to interest than to paying down your loan!

Now, if you can take out a 15-year loan (you would actually qualify for a lower interest rate, but lets keep our comparison constant) If you borrow $850,000 over 15 years at 5.87%

how much is the payment? (D)

How much is paid to interest? (E) .