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PSA, you will actually pay $1M for your $500k house at today's rates (lemmy.world)

submitted 3 days ago by randoot@lemmy.world to c/personalfinance@lemmy.ml

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This might be duh for some people, but if you're like me and considering a mortgage; at today's rates in the US at around 5-6%, over 30yr mortgage you will pay about same in interest as you will for your house price.

Your $500k house will cost you around $1M total over thirty years.

I was surprised.

https://m.mortgagecalculator.org/?q=A1Nzy-8KX

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[–] CombatWombatEsq@lemmy.world 7 points 3 days ago (1 children)

Look at the terms of your loan and your average return on your portfolio before blindly paying your mortgage early. If you manage to refinance at a good interest rate, you can often make more money on the market than you save on your mortgage. If I applied the balance of my savings to my principal today, I would lose significantly more interest from my investments than I'll pay in interest to my bank over the life of my loan.

[–] Broken@lemmy.ml 1 points 2 days ago

Glad you mentioned that, I completely forgot to bring that up.