Buying or Selling a Home/mortgage
Is it true that if you borrow $200,000 from the bank to buy a house, the house is 30 year mortgage. Eventually, when the 30 year is up, you would pay over $600,000. What kind of interest. I mean is that. I mean a $200,000 product is charge $600,000 over 30 years. I thought maybe over $250,000 is enough.
At 3% interest, the $200,000 you borrow to buy a house would mean you would have monthly payments of ONLY $843 for those 30 years. That is an historic LOW for an interest rate. That means you will have paid just $303,555 over the whole 30 years. That is VERY reasonable.
But if you were to pay 9˝% interest over the 30 years, you will have paid approximately $605,000 over that time.
In today's economy, paying 3% interest is VERY reasonable. I don't know what country you come from, Henry, but paying that amount is a very good rate of interest and if you had good credit that is the rate of interest the bank or lender would charge you. But based on what you have told me, you have very bad credit. Therefore, you are being charged almost 10% interest. The banks consider you too much of a credit risk.
Your payment would be $1,750 per month. And it would cost you $630,000 over the 30 years. But if your credit was very, very good, the bank may give you a 1˝% interest rate which would allow you to pay about $248,000 over the 30 years.
There's a price for everything, Henry. And your bad credit indicates you should pay just about 10% interest. The facts of life. Go back to the country you came from and see what kind of interest rate you will have to pay.