Secrets Your Mortgage Broker Doesn't Want You to Know - Interest Only Loans

[alexremix]

2:10 " Paying money into your mortgage technically is a zero rate of return"

scenario: 200,000 home at 6%.

Pay in 30 years: $417,290.28 ( you are now 30 years older) still paying.

Pay in 10 years: $267,407.88 (extra 1000 month) (you are 10 years older)

Now you can save the rest and your house is paid.

In the first case you paid 217,290.28 in interest to the bank.

That is a lot of "LOST" money!!!!!!!!!!!!!! In the second case 67407.88.

I like the second, I dont care if its "zero rate of return"