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Entire mortgage amortization period

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Mac is ready to purchase a home requiring a $250,000 mortgage. He is considering two options: the monthly payment of $1,314 on a mortgage amortized over 25 years at a fixed rate of 3.99%, compounded semi-annually, or the monthly payment of $1,844 on a mortgage amortized over 15 years at the same fixed rate. What is the difference in the total interest paid between the two different maturities? (Note, assume that the fixed rate of 3.99% does not change over the entire mortgage amortization period.)

Reference no: EM132386133

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