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Mathematics, 09.10.2019 17:30 Val03
Why does it take 30 years to pay off $150,000 loan, even though you pay $1000 a month?
a. sales tax is really high for home mortgages, and that is why monthly payments are much higher than just paying off principal.
b. banks trick investors into paying more money monthly so they can pocket the rest.
c. most home owners are expected to miss about half of their payments, so banks take this into account when determining the term of the loan.
d. even though the principal would be paid off in just over 10 years, it costs the bank a lot of money fund the loan. the rest of the loan is paid out in interest.
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Why does it take 30 years to pay off $150,000 loan, even though you pay $1000 a month?
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