The amount of interest you pay on your home mortgage may have the biggest impact on your personal finances over your lifetime.
Not sure you believe me? Well, consider this example:
I really like Bankrate’s website, and the site provides a simple home mortgage interest calculator. Let’s assume that you’re buying a $300,000 home loan, putting down a $15,000 cash deposit and borrowing the remaining $285,000 for 30 years. At a 5% rate, your payments are $1,529 a month. If, instead, you have to pay 6.5%, your monthly payment is $1,801 a month.