Quote:
Originally Posted by ASAP
People's heads would really explode if they knew what a 7% interest rate on a 30 year loan for a house really means  ... do you think they know that they pay more than double for the house at that point? |
I agree with you when you look at the full amortization table to see what the total payments are at loan term. But it's more complicated with home purchases. The assumption is the home is going to gain in equity and didn't over pay. You can claim some or all of the interest on your tax filing.
Just glad I'm sitting at 2.874% fixed on a 30 year loan and my vacation home at 3.25% fixed for 30 years. I don't see how people are still bidding up properties with the interest rate environment we're in now. Every home in my primary home's development has been sold when listed and all of them have gone for over asking with the recent homes having gone to settlement in the past month. There are three under contract now with no new listings still outstanding.