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When do you feel the most purpose?
Work sucks and I just wanna cuddle 🥺
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Enthusiast
You could also pay 100% in cash now and only pay $485k (plus fees). That’s roughly half a million in instant savings.
Follow me for more financial hacks.
Rising Star
Following!!
Enthusiast
OP, everyone here missing the point...yes yes, life is a scam.
Chief
FA1 both. We have Cannabis store in every neighborhood like liquor stores.
You’re paying for more than just a mortgage. You’re paying interest, insurance, and into an escrow account.
Enthusiast
Does your monthly payment also include Escrow?
Pro
For anybody buying in this market now I think that’s just the smartest move whether you cut it in half and make those payments or make an extra payment however you do it, you’re saving thousands of dollars in interest. That calculation used to be if you had a 30 year loan you’d pay it off in 20 years I don’t necessarily know that that’s still the same in today’s market. But anything is an improvement over 30 years.
Yes - absolutely correct Risk Officer. Instead of monthly payments, make them bi weekly. That adds 1 more monthly payment a year. There is some nuance with getting posted to principal otherwise the bank will apply to interest first and then just only early paying the interest payment
Pro
Please google interest rate.
Chief
🧐🧐🧐
How can this seriously even be a discussion...
Get a 15yr
Yes the cost of the loan is significant however that’s only if you keep the house for the entire term . If you sell at a good time, you may have only paid $100k into your house and could get more than that back. The chance at the end that you will receive equity upon sale is the entire point.
Had same scenario but house was 400k in LA. Had 30yr mortgage for 2yrs then went 15 after noticing the principal was barely moving as most of your payment goes to interest in the beginning of the loan. (Btw your payment doesn’t double when go 15yr. Reason being, your not paying as much interest because the term is shorter.) Now there is much more going towards the loan and we’re halfway done and the house doubled in value.
You can pay $1M on someone else’s home loan by renting, or pay off your own home, either way you’re going to pay. If we sold now we walk away with $400k. If we rented this whole time…nothing.
Welcome to interest rates
Enthusiast
You are paying the bank for the service of lending you money. That is how interest works. It costs you more to borrow than to pay in cash.
If you think about it, $1M won't be much in 30 years (if it is even today)
Find an interest only loan and let the equity take care of itself. If you double in value, you refi at a lower rate. If you drop in value, you walk away.
Yes - Deficiency judgment is what it’s called.
Chief
You generally pay 2.5x original balance with mortgages. The rate impacts that but the time is the biggest issue. You make one more P&I payment per year you can shave off 7-8 years and tens of thousands from the interest/total outlay.
Enthusiast
Have you looked at your taxes lately? Federal, State, Local, Property, Sales
Rising Star
Life is one big simulation anyway.
I mean that’s the point, most people don’t do the math so the math doesn’t math for them, but the math is definitely mathing for the banks and governments who make money off of it !!
yes