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What would the 50 year amortization mean
Manage episode 519308834 series 2979320
✅ the principal you borrowed
✅ all interest paid over the years
❌ It does NOT include taxes, insurance, or HOA unless noted.
Because longer terms spread payments out more slowly, they lower the monthly payment but massively increase total interest paid.
Below is a simple example to show how total payments change by loan term.
✅ Example: $300,000 loan at 6% interest
15-Year Mortgage
Monthly payment: ≈ $2,531
Total paid: ≈ $455,682
Total interest: ≈ $155,682
30-Year Mortgage
Monthly payment: ≈ $1,799
Total paid: ≈ $647,514
Total interest: ≈ $347,514
40-Year Mortgage
Monthly payment: ≈ $1,650
Total paid: ≈ $792,089
Total interest: ≈ $492,089
50-Year Mortgage
Monthly payment: ≈ $1,595
Total paid: ≈ $956,140
Total interest: ≈ $656,140
✅ Summary: Total Payments by Loan Term
Term Monthly Payment Total Paid Over Life Total Interest
15-Year ~$2,531 $455,682 $155,682
30-Year ~$1,799 $647,514 $347,514
40-Year ~$1,650 $792,089 $492,089
50-Year ~$1,595 $956,140 $656,140
✅ Key Takeaway
A longer mortgage = lower payment, but the total paid skyrockets because interest accrues for decades longer.
tune in and learn https://www.ddamortgage.com/blog
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