aefenglommung (aefenglommung) wrote,

Is this a good deal?

A commercial for a certain kind of home mortgage was playing on the TV. I hadn't paid any attention before, but it caught my eye just now. The company is offering a $200,000 loan with monthly payments of $999. Maybe that sounds like a good deal, but at the end of thirty years (the term of the loan), one would have paid a total of $359,640, for a total interest of nearly eighty percent (80%). Sheez.

I had always heard that by the time one had paid off a mortgage, one had paid for the house three times: once in principal, once in interest, and once in taxes and insurance. How right that is.
  • Post a new comment


    default userpic

    Your reply will be screened

    Your IP address will be recorded 

    When you submit the form an invisible reCAPTCHA check will be performed.
    You must follow the Privacy Policy and Google Terms of use.