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/biz/ - Business & Finance

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18371433 No.18371433 [Reply] [Original]

I just realized they got me. 3.14% interest on a 30 year mortgage and the minimum interest works out to be over 80% of the principal. How do they get away with it? This is robbery. I moved away from my family and friends to afford a house and to be raped mercilessly.

>> No.18371473

>>18371433
You need to factor in inflation, also that's not even a 2x after 30 YEARS. that's a horrible investment from the perspective of crypto zoomers

>> No.18371515

>>18371433
Mine is 2.99%. House is $250k
250k x .0299 = $7,475

Am I misunderstanding something??

>> No.18371561

>>18371515
x30

>> No.18371587

>>18371433
>>18371515
Any prepayment penalties?

>> No.18371595

>>18371561
Subtract the principal though.

>> No.18371617

Inflation + appreciation nullify all of that. 3% is ridiculously low for mortgage rates, you should feel blessed retard. Your parents had to deal with 7-10%.

>> No.18371643

>>18371515
Its only 2.99 if you pay off the entire loan in the first year

>> No.18371710

>>18371617
This. You have no idea, OP, how hard the boomers had it, taking their salaries that could (post-taxes) pay off their mortgages in two years but choosing to go on vacations annually instead.

>> No.18371726

>>18371433
that's why you pay it off ASAP. I'd rather save and wait than buy impulsively

>> No.18371738

>>18371515
holy shit retard
I'll take the bait

12 *30 = 360 <- total number of payments
0.0299 / 12 = ~0.0025 <- your monthly rate
$250,000 * 0.0025 = $625 <- average monthly interest (this would be with 0 down)
$625 * 360 = $225,000 <- total interest over life of loan
$200,000 * 0.0025 = $500 <- average monthly interest (this would be with 20% down)
$500 * 360 = $180,000 <- total interest over life of loan

It's a slightly more complex formula but these numbers are very very close.
You also need to consider that 20 or more years from now, that's not a lot of money

>> No.18371743

>>18371617
My parents sold their house every 2 years and made 30 to 50k profit each time. There was jobs and house prices were affordable, not rev limiting the fucking ceiling

>> No.18371784
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18371784

>>18371433
>not buying a rental property with artificially low interest rates like that

Its like you dont even want to make it.

>> No.18371802

>>18371433
Housing is highly regulated. From building codes (decent utility for end user) to zoning (less utility) to city or county planning (absolutely useless) the entire thing is rigged against you. The best time to buy a house is always going to be some point in the past and in the future there is a great desire to keep it going up in value by any means necessary. Raw land is even worse, that’s a cash only business and the price of land is artificially inflated to keep it out of the reach the average person.

>> No.18371917
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18371917

>>18371433
>not having over 20% downpayment
>not making it a 15 year mortgage rather than a 30 year mortgage
>even if you do a 30 year mortgage, if you make one extra mortgage payment per year on the principle (use your tax return or just save for it), you can turn a 30 year loan into an 18 year loan, and it be entirely voluntary

That being said, front loading the loans to be primarily interest is what should be illegal.
What this does is make you effectively rent from the bank for the first 10 of the 30 years.
If you ever need to move, you have built up like zero equity.
It definitely keeps the middle class poor.

>> No.18371917,2 [INTERNAL] 

>>18371917,1
Indeed, I can totally relate to this. The mortgage process is a headache and it's very hard to get as much money as you want.