News Releases
SHORTER MORTGAGE TERM SAVES YOU THOUSANDS
Interest savings outweigh the monthly payment increase
CHICAGO, IL (February 12, 2013) – If you could save thousands of dollars over the life of your mortgage AND pay the loan off 10 years sooner, would you be willing to spend just a few hundred dollars more each month on your mortgage payment?*
BMO Harris Bank knows that it is important for a homeowner to choose the right mortgage. With a number of options available, you should tailor your mortgage to your lifestyle, your current financial situation, and your risk tolerance. For those looking to be mortgage free sooner, choosing a mortgage with a 20 year term instead of a 30 year term can save thousands in interest costs over the life of a mortgage without a significant increase in your monthly payment.
Here is an example of how choosing a 20 year fixed rate mortgage instead of a 30 year could save you more than $52,000:
| 20 Year Term | 30 Year Term | |
| Mortgage Value | $200,000 | $200,000 |
| Mortgage Rate* | 4 percent | 4 percent |
| Monthly Principal and Interest Payment Amount |
$1,212 | $955 |
| Total Interest Cost | $90,871 | $143,739 |
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