Blaze to Personal Finance@lemmy.mlEnglish · 8 months agoHousing market affordability is so bad that Zillow says it will take you 13.5 years to break even on a purchase from July onwardfinance.yahoo.comexternal-linkmessage-square25fedilinkarrow-up1154arrow-down19cross-posted to: aboringdystopia@lemmy.worldnews@lemmy.world
arrow-up1145arrow-down1external-linkHousing market affordability is so bad that Zillow says it will take you 13.5 years to break even on a purchase from July onwardfinance.yahoo.comBlaze to Personal Finance@lemmy.mlEnglish · 8 months agomessage-square25fedilinkcross-posted to: aboringdystopia@lemmy.worldnews@lemmy.world
minus-squareCustodialTeapot@lemmy.worldlinkfedilinkEnglisharrow-up10arrow-down7·8 months agoI don’t think you understand mortgages very well. You know you can remortgage or sell your house before it’s paid off, right? If I pay in £500 a month. Likely, 20-80 of that goes to interest. I’m gaining £480 in equity each month. Which I can gain access it at near any point with very little penalty. You’re focusing very blindly on your single point of “the deposit”. Which is the hurdle everyone should focus on however possible.
minus-squareTunaCowboy@lemmy.worldlinkfedilinkEnglisharrow-up13·8 months ago If I pay in £500 a month. Likely, 20-80 of that goes to interest. I’m gaining £480 in equity each month. What kind of amortization schedule is this based on? This seems completely divorced from reality.
minus-squareSaintpaul@lemmy.worldlinkfedilinkEnglisharrow-up6·8 months agoIt is. I bought my house two years ago with a low interest rate and it’s still another four years before I’m paying more money towards my principal than interest.
I don’t think you understand mortgages very well.
You know you can remortgage or sell your house before it’s paid off, right?
If I pay in £500 a month. Likely, 20-80 of that goes to interest. I’m gaining £480 in equity each month.
Which I can gain access it at near any point with very little penalty.
You’re focusing very blindly on your single point of “the deposit”. Which is the hurdle everyone should focus on however possible.
What kind of amortization schedule is this based on? This seems completely divorced from reality.
It is. I bought my house two years ago with a low interest rate and it’s still another four years before I’m paying more money towards my principal than interest.