Part 16 (1/2)

$1,500.

6.50%.

$2,840.

$2,180.

$1,865.

$1,690.

$1,583.

7.00%.

$2,905.

$2,248.

$1,940.

$1,768.

$1,665.

7.50%.

$2,968.

$2,318.

$2,015.

$1,848.

$1,750.

8.00%.

$3,035.

$2,390.

$2,093.

$1,930.

$1,835.

8.50%.

$3,100.

$2,463.

$2,170.

$2,015.

$1,923.

The table shows roughly how much you'd pay every month on a $250,000 mortgage (including princ.i.p.al and interest). For example, if you took out a 30-year loan at 6% interest, your payment would be about $1,500. But if you shopped around and found a 5.5% rate, you'd pay $1,420, saving $80 every month for 30 years. A difference like that really adds up over time.

TipVertex42.com offers a free Excel spreadsheet that lets you calculate approximate home-owners.h.i.+p expenses, including your mortgage, taxes, and insurance, but also maintenance and improvements. Download it here: tinyurl.com/home-calc.

The type of mortgage you take out will depend on your goals and your financial situation. Most people opt for a mortgage with a fixed 15- or 30-year term. Here's some info that can help you decide which is best for you: - Interest rates on 15-year mortgages are lower than those on 30-year loans, but because the loan is only half as long, your monthly payments are higher. (See the table above to compare monthly payments.) If you can keep saving for retirement and other goals despite the higher monthly payments, a 15-year-loan is a great option because it'll save you a bundle in interest. But if it's going to crimp your cash flow, go with a 30-year mortgage instead.