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If you were immortal, you could pay off a loan over hundreds of years. Imagine a mortgage of $500K being paid off over 3 years. Suddenly, paying $1M-$2M isn't s
by ryanhuff 10y ago
If you were immortal, you could pay off a loan over hundreds of years. Imagine a mortgage of $500K being paid off over 3 years. Suddenly, paying $1M-$2M isn't such a barrier.
- derekp7 10y agoIt doesn't work that way -- the upper limit is still the monthly interest on the loan. So at 3%, 1M is still 25K per month. Unless I'm missing something? (I believe that there is a classification of interest-only loans currently).
- greedo 10y agoYes, your math is off. At 3% the annual interest on a $1M loan would be $30-$40K (depending on how the interest is calculated), per year. Monthly, that would only be around $2500-$3500. Principal repayment be +/- $833/month.