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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[–] 12 points 1 year ago (2 children)

Yes, this is how interest works and how lenders make money. It's a lot.

The lessons are:

Pay a little bit more every month (applied to principal) to the effect of 1 additional monthly payment a year or more. It will dramatically reduce your overall interest and length of loan.

You're talking about a long loan, during that time rates will rise and fall. When they fall, you refinance at a lower rate. Don't extend your loan longer (don't take another 30 year loan after you've lived there 5 years, take a 25 year loan). That will give you the best market results for something you can't control.

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