Friday, July 11, 2008

Financial Guru: Mortgage

And this is what my Financial Guru says about the whole mortgage thing:
The maximum standard amortization before crazy married insane was 25 years. The difference between a 25-year amortization and a 40-year amortization is the cost of the house in interest. Yup. If you take a 25-year amortization, you’ll pay for your house, and pay for it again in interest. Do it for 40 years and you’ll PAY FOR IT TWICE in interest. That’s the real story.

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Anonymous J.W. ~ 9:30 AM

When we bought our $50,000 house, I worked it out that the payments would add up to $150,000 over 25 years. Three times as much.

But it's never really 25 years with bi-weekly and all the other options for paying it down much quicker.

40 year mortgages are considered 'interest only' no?

You have to hope to strike it rich some time in that forty years and pay it off. Or die.  

Blogger Working From Home Today ~ 9:39 AM

Did you read the whole article? It just makes me mad.  

Blogger notquiteawake ~ 8:43 PM

Well shit.  

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