Except for the fact that over the first 10 years of the loan, nearly 90% of that payment goes to interest.
Amortization and front loaded interest is a bastard. With property tax and insurance, a $500k house will cost about $1.5MM over the life of the loan.
Not trying to dissuade anyone from home ownership, it’s just not as cut and dry as it may seem.
Except for the fact that over the first 10 years of the loan, nearly 90% of that payment goes to interest. Amortization and front loaded interest is a bastard. With property tax and insurance, a $500k house will cost about $1.5MM over the life of the loan.
Not trying to dissuade anyone from home ownership, it’s just not as cut and dry as it may seem.