When you take out a mortgage, you end up paying little in interest over the years? TRUE OR FALSE?

Answer 1

false
you pay interest big time with a mortgage because it's over a long period of time

Answer 2

Generally, false. You will end up paying A LOT of extra money in interest on a mortgage. There are many factors to calculate to figure out how much you pay such as the interest rate, length of the mortgage (10yr, 20yr), did you always pay on time, and was it a fixed low rate or was it a variable rate and the Federal Reserve raised the rates a few times (unluckily for you) so you had to pay a lot more. It's always best if you are able to pay in full as soon as possible. A mortgage is a lot like a credit card - they are both loans - and you can pay the minimum payments with interest, but you end up paying a lot more. Everyone knows you should always pay off credit cards in full each month (if possible) or else you're on your way to DEBT and possible bankruptcy.

Answer 3

False

Answer 4

False, depending on the mortgage you end up with (i.e., 30 year fixed) you are paying a ton of interest at the beginning of the loan. Each payment you make is approx. 85% interest initially, with only 15% of your payment coming off of the actual principal of the loan. You will see that when you sign your paper work a 30 year fixed loan for $150,000 home at 8.25% you will pay something near $300,000 in interest over the life of the loan. That's why it is really important to have a great credit score when buying a house. The better your score, the lower your percentage rate will be.

Answer 5

False

Answer 6

False

Answer 7

False

Answer 8

False

Answer 9

False

Answer 10

False

Answer 11

False