This might be duh for some people, but if you’re like me and considering a mortgage; at today’s rates in the US at around 5-6%, over 30yr mortgage you will pay about same in interest as you will for your house price.
Your $500k house will cost you around $1M total over thirty years.
I was surprised.
You may be surprised that the average 30 year mortgage lasts fewer than 10 years due to being refinanced or paid off like in the event of a home sale. That’s why people use the 10 year yield for comparison.
When I bought my house in 2015, they told me 7 years was their assumption when you buy points. I bought the points thinking 3.25% for 30 was as good as it gets. Six years later I refinanced at 2.75 for 20, basically knocking 4 years of the end with the same payment.