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The loan amount for the house will be $287,000 and the APR for a 15 yr loan will be 4.05%. For the 30 yr loan the APR will be 4.35%.
15 yr loan payments would be $2,131.59 a month
15 yr loan interest rate paid would be $96,486
30 yr loan payments would be $1,429.72 a month
30 yr loan interest paid would be $227,498
A person might choose a 3o yr loan for a lower monthly payment so they wont be living paycheck by paycheck or simply because it seems less of a difference monthly than a 15 yr monthly payment would. A person might choose a 15 yr loan because of the fact they save more money all around such as interest and the total amount being paid for a house. also it less of an interest rate than a 3o yr but a higher monthly payment which would limit a lot of people.
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