Brought to you by the Every Dollar app. Start budgeting for free today. I want to take a look at an example of the 15-year mortgage, which is the one we recommend versus the 30-year mortgage, to show people exactly what the numbers look like. And we're not going to get super nerdy. I'm not going to talk amortization schedules, Rachel, but I did want to look at this graph from our blog article on the 15-verse 30. So we're going to get super nerdy. I'm not going to talk amortization schedules, Rachel, but I did want to look at this graph from our blog article on the 15 verse 30. So we're going to look at a $300,000 house,

which I understand you're all like, where can you find those? This is back in the day, kids. Let's say

you did 20% down on this $300,000 house. That's $60,000. Tracking? That means you'd get a mortgage for

$240,000. So let's look at that same mortgage on a 15 year and a 30 year. And the blue, if you're

watching on YouTube, is the mortgage loan. The orange is the amount of interest you pay. So here's the

shocking part. On a 15-year fixed-rate loan with an

interest rate of 3.5%. The monthly payment is $1,700. And the total interest you pay is $69,000.

If you just paid every single payment perfectly for 15 years. Right, right. On the 30-year,

you're going to have a higher interest rate at 4%. Now, the payment is lower, which is why most people do it. It's 1146 instead of 1716. 176.

It's 11.46. But the total interest you pay on that 30 year, over 30 years of payments is $172,000 that you just gave away to the lender.

Yep. That is shocking.

I mean, almost $100,000 more.

And that's, again, I get the interest rate.

People are probably like, it's at 6%.

Sure.

Well, the numbers change now, but it's even worse with a 30 year at 8%.

Right, right.

So the math is just magnified.

You're paying $350,000 on that 8% loan. That's why we want your mortgage paid off ASAP because this interest, you guys, I mean, it does.

It just, it racks up and you see it.

So you're paying over $100,000 more in interest to have the 30 year over the 15.

I know people have great intentions.

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