Historic Low Interest Rates? Not Really.
Updated: May 19
Don't get fooled by banking institutions and lenders when they say we are at "historic low rates" for borrowing money to purchase your dream home. Today, we live in a low-interest-rate environment, where the cost of borrowing for governments and institutions is lower than the historical average. But, what are you really paying for as it relates to interest rates?
Let's explore the crime behind historic low interest rates when it comes to borrowing money to purchase your dream home. As they say... numbers don't lie. As shown in the above amortization schedule, with a $300,000 mortgage at 3% financing, where in the first 21 years are the homeowners actually paying 3% rates? As you can see, in the first year of this repayment program, the homeowner is paying approximately 58.73% towards interest for each monthly payment and this outrageous scam continues for 21 years to 24.86% interest!
As you can see, where is the 3% "historic low" interest rate helping the homeowner?
Did you know that, on average, a homeowner will stay in their first home for approximately 11 years? As such, you can see that almost half of what they pay monthly over those 11 years goes to interest. Actually, 51.8% will go to interest. What if you could pay-off your mortgage in as little as 5-7 years, and save tens if not thousands of dollars of interest payments? It's possible and you can easily beat the bank and lenders at their own game. Let us perform your FREE Payoff Analysis to determine your debt-free date.