You will own nothing!
Jul 16, 2023
New mortgage math is brutal.
— Austen Allred (@Austen) July 13, 2023
Say you buy a $1m house with $200k down at a 7% rate ($800k mortgage).
Over the first three years you pay $193k ($5,322/mo.)
After those $193k of payments your $800k mortgage is now at $774.5k.
You paid $166k in interest, $25.5k in principle.
Yeah, that's not an outlandish example. $1 million is the price of an average house in my city in Canada. Even tiny, old, creaking, crumbling houses go for over $500,000.
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