Consider a $200,000 mortgage -- modest by today's standards -- at one of today's lowest 5-year term rates (5.55%). In exchange for the benefit of paying $197.15 less per month, you will: owe on your mortThere is no other way to put it, really. Let's assume you buy at age 30. With a 25-year amortization, your monthly payment will be $1226.91 With a 40-year amortization, your monthly payment will be $1029.76 If you can't afford a 25-year amortization, what makes you able to afford a 40-year? Broker fees may come in different forms, either as an addition to your interest rate, a separate fee, or points paid at closing. With all these additional fees, you might find that your best mortgage rate deal may not sound so great after all.
