My dream home now is located in a suburb North of Cincinnati, Ohio,
which is where I currently live. The current value of the house is
$790K on Zillow. After putting a 20% ($158k) down payment on the
house, the amount of the loan would drop to $632k. Over the term of
the loan, the overall amount of interest paid would be $894k, at an
interest rate of 7.08%.
After changing the interest rate to 3.1% (30-year fixed mortgage rate
for November 2021), the overall interest paid over the life of the loan
would drop to $340k, a 62% change. When changing the down
payment to 50% instead, the overall interest paid over the life of the
loan is $556k. When looking at both of these scenarios, I would opt
for the lower interest rates versus a higher down payment especially
if it is a 30-year loan. Another scenario to consider is exploring a 15-
year loan as opposed to a 30-year loan. While the monthly payments
will certainly be higher, the overall interest paid in 15 years is
significantly less than 30 years. The total interest paid on a 15-year
loan would be $395k as opposed to $894k for a 30-year loan.
Zillow, I. (n.d.). 7142 Saint Ives PL, West Chester, OH 45069: MLS
#1738899. Zillow. Retrieved November 14, 2022, from
https://www.zillow.com/homedetails/7142-Saint-Ives-Pl-West-
Chester-OH-45069/33187356_zpid/
