I thought buying a home cost a lot. I thought if I were to buy a house I would have to pay 1,000 or more just on the monthly payment. In this project we did the calculations according to the interest rate, amount paid and time. I knew that the interest rate decreases while the amount paid towards the payment increases, but I didn’t realize how the monthly payment can decrease according to the amount of time the loan is set for and the amount of extra money that can be put towards the principle if desired.
Right now I am paying $650 for a basement I don’t even like because it is the cheapest we were able to get. Furthermore the money we pay for rent is being given to someone else, it is not being put towards any purpose/benefit to us and we will never see that money again. It is interesting to me to see that on a 30 year contract, for a house that cost $201,000 and a down payment of $20,100 we can pay $582.94, less than what we are paying right now. This also comes with benefits like: ITS A HOUSE, we have our own backyard, we don’t hear people above or below us, its more private and we can do what we want with it practically. Furthermore we could sell it later and gain at least our money back (that’s better than paying thousands of dollars to a landlord where we’ll never see that money again.).
Below is the link to the mortgage project.
