Home Taxing

[Guest Plastic]

Why is it that finance charges on a house cost so much. With taxes and insurance the price of a home doubles. It's like buying 2 houses.

Is it the same for a millionaire? If I buy a $9 million house while I end up spending $18 million?

[TJones]

Why is it that finance charges on a house cost so much. With taxes and insurance the price of a home doubles. It's like buying 2 houses.

Is it the same for a millionaire? If I buy a $9 million house while I end up spending $18 million?

Finance it for 5 yrs. like you would a car, and you'll save tons Plastic. Plastic, the banks are giving you 30 years to pay it off, the interest rate, just like credit cards, is how they make their money, but there is no penalty for paying off early. Well, some loans ARE structured to where you can't pay it off so fast, and you have to wait at least 2yrs. sometimes 3 or there IS a penalty.

[FilioScotia]

Why is it that finance charges on a house cost so much. With taxes and insurance the price of a home doubles. It's like buying 2 houses.

Is it the same for a millionaire? If I buy a $9 million house while I end up spending $18 million?

Those finance charges are the price the mortgage company charges you for giving you 10, 20 or 30 years to pay back the money they loaned you to buy the house. The longer your mortgage term, the more interest you pay. If you don't want to pay double for your house, refinance and get a shorter term.

Even so, you shouldn't complain. That mortgage interest and your property taxes are almost the only thing left that the IRS allows you to deduct from your income taxes.