(December 6, 2016 at 10:53 am)Shell B Wrote:(December 6, 2016 at 10:49 am)Tonus Wrote: The way they structure it is what really can sour a potential buyer. You pay most of the interest up front and only chip away at the principal at first. Works beautifully if you're the bank...
That's just insane. You could pay out a ton and have nothing yet to show for it. It's like paying interest on money you haven't even received yet. Sure, you live in the house, but you're essentially only paying rent on it for however long that takes. Ugh. I'm really considering buying a cheap house and then saving all of our money for a few years until we can buy a better house.
The interest is a tax deduction.
Not sure what it's like in the Boston area but here you can buy a house just as cheap as rent a house and build equity.
Just look at the house payment like a credit card payment, you never pay the minimum. You pay extra each month and tell the bank (and you do have to tell the bank) that the extra goes to the principle. Try to make twice the monthly payment in principle payment each year.
I don't have an anger problem, I have an idiot problem.
