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Old 01-13-2008, 11:01 AM   #60
Mike Oxlong
Got Oliver Klozoff
 
Join Date: Feb 2003
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Quote:
Originally Posted by GreenTeaFrapp View Post
In your example do you know how long it will be before you start paying more then $400 a month towards your principal? It'll take more then a year to do so. In the first year of your mortgage you are paying mostly interest.

So even if your house goes up in value by 10% in one year, you've still had to pay thousands in interest in your first year.
I realize that. The fact is with every mortgage payment you are contributing to your own equity. At first it's not much but eventually you will own it outright plus all the appreciation that has occured over the term of the mortgage.

Towards the end of the mortgage you are going to be paying $1000 towards principal and $400 to interest, and it just keeps getting less and less interest you pay.

With rent you throw it away and will never see it again period.

AsI said to Radley. If you are happy renting then continue doing so. For me buying is a way better option so that's what I have done and will continue to do.
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