I created a spreadsheet dictating what it would be like If I took out a $70,000 loan out at a 3.5% APR and calculated that out over 15 years and 30 years to find out the pros and cons of making a financial decision like that. I will attach it at the end of the post so that you can see the same results I had gotten.
The pros for taking a 15 year loan is that you wouldn’t be paying back the loan as long, paid overall a lot less in overall interest in half the time. The downside to that is you have a higher monthly payment and there might be times when some months you dont have as income to make the payment. Thats where the advantages of the 30 year loan is. As dictated in the spreadsheet while over 30 years if you wanted to manage a lower payment rate but be paying interest longer thats the result. I definetly see the advantages of both but after reviewing the numbers I would pick the shorter loan. Yeah youre monthly payments will be higher but you are not paying as much in interest and will pay it off quicker in turn saving you more money in the long run.
https://docs.google.com/spreadsheets/d/1H8jgovkOyMFyZD60LBJDqptRESb9oPcjbX0SKSi4evY/edit?usp=sharing
Corrupted_C.E.O 