Comment: Kinda...

(See in situ)

In reply to comment: I think your calculation is (see in situ)

wolfe's picture

Kinda...

It wasn't incorrect but it was misleading... here is the site I pulled it from. I should have found a better site that would have pre-calculated the mortgage payment though. I thought the number seemed high.

http://www.bankrate.com/calculators/mortgages/loan-interest-...

Numbers used:
Loan: 200,000
Mortgage: $800 (My $180k was about $750 for the mortgage payment)
5% interest

Even paying $1200 a month would result in $150K in interest. And $1200 would be way to high of a mortgage payment on that loan value.

You can greatly reduce the interest you pay over the life of the loan by overpaying the mortgage up front. But that carries significant risk of it's own.

The Philosophy Of Liberty -
http://www.thephilosophyofliberty.com/