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.

https://m.mortgagecalculator.org/?q=A1Nzy-8KX

  • davel [he/him]@lemmy.mlEnglish
    6·
    22 hours ago

    Yeah, that’s how interest on debt works. It works the same way on your savings account, where the bank is essentially borrowing money from you at x% interest.

    It’s actually worse in the case of mortgages because they’re front-loaded with interest, which will eat into your profits if you sell the house early.

    • Albbi@lemmy.caEnglish
      1·
      7 hours ago

      I found a pretty interesting calculator that takes a lot of factors into account for buying vs renting. It’s for Canada, but you could modify a bunch of the parameters to get an idea for your area.

    • Croquette@sh.itjust.worksEnglish
      5·
      11 hours ago

      It’s such a fucking scam that you pay the interest up front.

      If you default on your house, the bank got a lot of money in interest and they get to keep the house.