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Answers (5)
- Laura Fleischer, "Laura helps you buy"
- Contributions:29
The interest is the cost of borrowing the money. So you are paying the lender yto lend you the money. If you did not have to borrow the money, it would not cost you more. It is a way that the banks make money.
- HomeSand.net, "White Picture"
- Contributions:4398
Actually, with today 5% interest rate for 30 years term, the interest in 30 years is less than the actual price of the house.
You pay $93,256 for the interest per $100K which you borrowed.
http://homesand.net/MonthlyPayment.aspx
You pay $93,256 for the interest per $100K which you borrowed.
http://homesand.net/MonthlyPayment.aspx
- Dan, "the_country_hick"
- Contributions:4700
Think back 30 years ago. In 1980 a datsun, toyota, or chevy mini-truck cost $6,000 new. Now they cost at least $15,000 for the same price. Look at what a house cost in 1980. Look at it now.
A big reason interest costs so much is because the federal reserve keeps printing more money so your money becomes worth (much) less than it is now. Money loses value so expect any interest costs to reflect that.
A big reason interest costs so much is because the federal reserve keeps printing more money so your money becomes worth (much) less than it is now. Money loses value so expect any interest costs to reflect that.
- wetdawgs
- Contributions:26854
The interest one pays over the period of the money depends on how much money you borrow, how quickly you pay it back and your interest rate. If you have a minimum down payment and are paying over 30 years, yes, you will pay more than the purchase price of the home in interest. If you put down 80% and pay it off in 2 or 3 years, you won't pay more in interest than the original purchase price of the house
- John Stewart, "nwhome.us"
- Contributions:2166
Because the buyer decides to borrow money instead of paying cash for the purchase.
Why does interest on a mortgage end up costing more than the actual price of the house?
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