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That does not sound right to me. Your interest rate would have to be pretty high. I currently have a loan with a 4% rate I got last year, and my friends are rep
by Cerium 7y ago
That does not sound right to me. Your interest rate would have to be pretty high. I currently have a loan with a 4% rate I got last year, and my friends are reporting getting around 3% currently. With a 4% rate, you should end up paying a total of about $860,000 - $500,000 in principal payments and $360,000 in interest.
- lotsofpulp 7y agoIt is shocking how many people come out of a high school education in the US without understanding amortizations. I cringe every time I hear “front loaded” interest. As if the borrower didn’t “front load” the debt? https://www.bretwhissel.net/amortization/amortize2col.pdf https://www.bretwhissel.net/amortization/amortize2col.pdf
- stkdump 7y agoAlso, buying the same house 6 years later means probably paying more for the same house. And you have to live somewhere in the meantime as well.
- wolfhumble 7y agoFor positive discount rates today's value (NPV) of both principal payments and interest will actually be less than what is stated as they are paid in the future (1:). Of course, the effect of this depends on the size of the discount rate, https://www.investopedia.com/terms/n/npv.asp https://www.investopedia.com/terms/n/npv.asp (1: not looked at the calculation as the time period is not stated)