[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]
Perhaps a more pertinent way to do an apples-to-apples comparison of a 15yr fix with a 30yr fix is to calculate the total interest difference between paying off the 15yr fix and paying off the 30yr fix by overpaying at the same mothly PITI as the 15yr fix. That difference represents the cost of having the flexibility with the 30yr fix to make smaller monthly payments, say if you lose your job for a period.
