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20 Year House Payment Chart
Many years ago, 20 year mortgage were the most popular mortgages available. In fact, for many years the only mortgage term available was for 20 years. This was at a time interest rates were around 5% and housing prices were anywhere from $10,000 to $40,000. The monthly mortgage payment on such a mortgage was somewhere around $170. Yes, those were the days.
Today mortgage rates are even less than 5% on most mortgages. What this means is many people have gone back to using mortgages with a term of 20 years. So, the logic is, if you can afford a monthly payment that a 20 year mortgage would require, why take a 30 year or 40 year mortgage? The extra years you will be paying for a mortgage on the longer term loans would be wasted money if you could have been paid in full already by taking a short term loan.
Because they will yield a monthly payment many buyers can afford, 15 year and 20 year mortgages are popular these days. Of course, the low interest rates are part of the equation and the fact real estate prices are falling is the other important part.
If housing prices turn around and start to rise or if interest rates start to rise, it is only natural the monthly payment required to pay a mortgage will be higher. So, the logic is, why not take a mortgage with a shorter term while it is affordable. Two or three years down the road it just may be you would be required to pay a higher monthly payment for a 15 or 20 or mortgage than you could afford.
So, the popularity of 15 and 20 year mortgages may be a temporary phenomenon. Whatever the case, it is only logical to take out a loan with as short a term as you can afford because the savings this loan will render over the course of an entire mortgage will be tremendous.
Of course, another way to look at today's housing market is; the fact there is low interest rates and the fact housing prices are depressed means a common ordinary working person may be able to afford a house far beyond the price range he ever thought it would be possible to.
In short, this is why House Payment Charts has charts available for mortgage terms of 10 years, 15 years, 20 years, 30 years, and 40 years. To build your house payment chart all you have to do is click the button that says "click to build house payment cart." This will build your chart on a new page and this chart will be printable so you can print it out and keep it.
Chart For 20 Year Mortgage
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