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Have you ever actually had a mortgage? The majority of your mortgage payment goes directly to interest, NOT equity. Equity contributions only ramp towards the
by pnut 13y ago
Have you ever actually had a mortgage? The majority of your mortgage payment goes directly to interest, NOT equity.
Equity contributions only ramp towards the very end of the term. Up front, you are paying mostly interest.
- seandhi 13y agoAnd if you live in a state with high property taxes, like Texas, then your taxes will likely dwarf any principal that you pay at the beginning of your loan.
- marincounty 13y agoIt seems like so many people fail to realize how much property taxes can add up too?
- craigyk 13y agoOn the plus side, just by paying a couple hundred bucks extra a month you can double to triple the amount going into equity at the beginning. Bonus is they send you a check every couple of months as they recalculate how much interest you've headed off at the pass.