Are the following statements true or false?

Fiction:

A large down payment will save you more money on your mortgage over time than a small down payment.

Fact:

Making a large down payment may save interest charges on the mortgage but you will lose the opportunity to earn interest on the down payment - this opportunity cost is greater and more risky than the mortgage interest saved.

Fiction:

15-year mortgage will save more money over time than a 30-year mortgage.

Fact:

It has been proven that a 30 year mortgage is cheaper than a 15-year mortgage in saving interest and becoming mortgage debt free if a sound strategy is followed:

• Save the difference between the payments in a liquid, safe side account - even if the interest paid is less than the rate on the mortgage.
• Consider the tax deduction of a primary or second home mortgage when calculating the total cost of a mortgage.

Fiction:

Making extra principal payments saves you money.

Fact:

Making extra principal payments is like saving money in your mattress. You may think you are saving on mortgage interest charges but you lose the opportunity to earn interest if you saved this money outside the home.

Fiction:

The interest rate is the main factor in determining the cost of a mortgage.

Fact:

The main factors in determining the cost of the mortgage are your unique financial circumstances. Interest rates are relative to the mortgage loan term and program type. There are hundreds of examples when comparing two loans - that the loan carrying a higher interest rate is actually cheaper in the long haul than the loan with a lower rate.

Fiction:

You are more secure having your home paid off than financed 100%.

Fact: