For a $500k loan at 6% you’re looking at $580k in interest over 30 years or about $1.1M total.
For the same house over 50 years at even 1% higher APR, you’re looking at $1.3M in interest alone or $1.8M total.
You’d pay more in interest alone than you would for the entire principle + interest of a conventional 30 year mortgage and the difference in monthly payment between the two (not that this should really ever be part of the equation) is only $10, so where the fuck is the “savings?”
The cost difference is insane.
For a $500k loan at 6% you’re looking at $580k in interest over 30 years or about $1.1M total.
For the same house over 50 years at even 1% higher APR, you’re looking at $1.3M in interest alone or $1.8M total.
You’d pay more in interest alone than you would for the entire principle + interest of a conventional 30 year mortgage and the difference in monthly payment between the two (not that this should really ever be part of the equation) is only $10, so where the fuck is the “savings?”