Learn How a 25-Year Mortgage Can Help You Save MORE!

Published On:
May 09, 2022

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If you are looking at different mortgage financing options, you may find yourself questioning the difference or wondering if a 25-year or a 30-year mortgage may be the right option for you. There are many reasons that a 25-year mortgage might be the best option for you, such as being able to save on interest, paying off your loan faster, and building equity in your home quicker.

Let’s do the math.

Let’s use a $300,000 loan amount as an example. If you get a 30-year mortgage at an interest of 5.250% APR*, your principal and interest payment would be around $1,656.62. By multiplying that payment by 360 (30 years of payments) you get a total payment amount of $596,383.20.

Now let’s do the same thing for a 25-year loan using an interest rate of 4.625% APR*. Doing this calculation gives us a monthly payment of $1,688.85. When we multiply that by 300 (25 years of payments) we get a total payment amount of 506,655.00.

What’s the difference?

In this example, we can see you could save a total of $89,728.20, get out of debt five years sooner, and only pay $32 more each month.


Right now, you can take advantage of our limited time 25-Year Mortgage Special. Stay current on special rates by visiting our rates page.

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*Annual Percentage Rate (APR) is for illustrative purposes only and does not necessarily reflect any actual rate offered. Illustrative example does not include PMI, taxes, or insurance, and payments will be higher. Savings amount demonstrated should not be relied upon as actual savings you will receive.

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