See the chart below. The traditional 30 year mortgage (left) has a 5% interest rate. As the chart indicates, for a $175,000 mortgage a homeowner will pay an estimated $163,197.62 in interest payments alone over the term of the loan for a total loan amount of $338,197.62! Habitat homeowners receive a 0% interest loan (right), which saves $163,000 in interest payments over the life of the loan and makes the monthly payments affordable.
