Over the life of the mortgage loan, of course.
A traditional 30-year mortgage of $200,000.00 and an interest rate of 4.75%, the principal and interest payment would be $1043.00 per month and you would end up paying $175,600.00 in interest over the life of the loan.
Contrast that with a 20-year mortgage, with a 4.5% interest rate (you can typically get a lower interest rate with a shorter term) the monthly principal and interest payment would be $1265.00 and you would end up paying $103,670.00 in interest over the life of the loan.
Saving you about $71,930.00 in interest. Not bad.
So if you can do it, it would be worth it for you to get a 20-year note over the long run.
P.S. Most mortgage brokers will probably not suggest a 20-year note for you so you may have to approach the subject on your own.
