A 30-Year Trap: The Problem With America’s Weird Mortgages
A 30-Year Trap: The Problem With America’s Weird Mortgages
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American mortgages are scams. $100k house at 3% interest over 30 years turns that $100k home into $189k giving the loan institution a free $89k all for commoditizing shelter.
Ah yes it’s so much worse than other countries where that interest is 3%, oh wait no now it’s 7%, oh never mind it’s 5% now, oh hold on now it’s 12%.
A rate locked for the entire term of the mortgage is immensely better for the buyer than a rate that can change every 5 or so years.
$100k house
Oh, you sweet summer child...
Also, please come back when you understand opportunity cost. I will GLADLY pay anyone a 3% rate to front any amount of money I already have.
I used that number for simplicity's sake since so... so many of you have a hard time putting large numbers into understandable chunks.
I do understand opportunity cost. My gripe is applying it to shelter to begin with. The whole notion of using shelter as a means for financial gain is absurd. That's the reason 2008 happened and why housing is unobtainable now.
I'm glad you have $100k on hand. Most don't.
No shit...lol they have no clue how interest works
Oh is my math wrong?
Payment = rate*(loan amount)/(1-(1+rate)^(-number of payments))
Rate =.03/12 = 0.0025
Payment = 0.0025*100000/(1-1.0025^(-360)) Payment = $421.60
Therefore, $151776 will be paid in total, or $51776 in interest.