I'm a visual person so the idea of a 30 year mortgage didn't make much sense to me until I could see it

[

This isn't exact but it's pretty close.

#GREEN MEANS GONE!

The green Interest lines represent the money you're giving to the bank as a "thank you" for lending you a large amount of cash up front. As you've already figured out, that's at least the same amount as the price of the home!

#TIPS TO BE SAVVY

As much down-payment as is reasonable.

• 10% down means another 10% that you bite away from interest
• Be careful not to put EVERY penny down, always leave room for a rainy day fund (3 months of payments) in case of a disaster or job loss, it's unfortunate but it happens when least expected.

Keep one eye on beating the interest

• If you're a first-time home buyer check to see if you get a perc to buy. When I bought a home I was given an $8k benefit for my area!
• If you can, specify an additional $100 of your payment to be applied directly toward principal. This could eat up to 5 years off your 30 year loan!
• Advanced: Get an Adjustable Rate Mortgage which starts low (~50%) and eventually blooms (~150%) after a few short years. Pay the bloom from the beginning but put all the money beyond the minimum payment DIRECTLY toward principal. This is a great way to flip the interest algorithm into your favor.

Best of luck!

I'm a visual person so the idea of a 30 year mortgage didn't make much sense to me until I could see it

[

This isn't exact but it's pretty close.

#GREEN MEANS GONE!

The green Interest lines represent the money you're giving to the bank as a "thank you" for lending you a large amount of cash up front. As you've already figured out, that's at least the same amount as the price of the home!

#TIPS TO BE SAVVY

As much down-payment as is reasonable.

• 10% down means an additional 10% that you bite away from interest ie doubling money
• Be careful not to put EVERY penny down, always leave room for a rainy day fund (3 months of payments) in case of a disaster or job loss, it's unfortunate but it happens when least expected.

Keep one eye on beating the interest

• If you're a first-time home buyer check to see if you get a perc to buy. When I bought a home I was given an $8k benefit for my area!
• If you can, specify an additional $100 of your payment to be applied directly toward principal. This could eat up to 5 years off your 30 year loan!
• Advanced: Get an Adjustable Rate Mortgage which starts low (~50%) and eventually blooms (~150%) after a few short years. Pay the bloom amount from the beginning but put all the money beyond the minimum payment DIRECTLY toward principal. This is a simple move to chip away at the interest.

Best of luck!

I'm a visual person so the idea of a 30 year mortgage didn't make much sense to me until I saw it

[

This isn't exact but it's pretty close.

#GREEN MEANS GONE!

The green Interest lines represent the money you're giving to the bank as a "thank you" for lending you a large amount of cash up front. As you've already figured out, that's at least the same amount as the price of the home!

#TIPS TO BE SAVVY

As much down-payment as is reasonable.

• 10% down means another 10% that you bite away from interest
• Be careful not to put EVERY penny down, always leave room for a rainy day fund (3 months of payments) in case of a disaster or job loss, it's unfortunate but it happens when least expected.

Keep one eye on beating the interest

• If you're a first-time home buyer check to see if you get a perc to buy. When I bought a home I was given an $8k benefit for my area!
• If you can, specify an additional $100 of your payment to be applied directly toward principal. This could eat up to 5 years off your 30 year loan!
• Advanced: Get an Adjustable Rate Mortgage which starts low (~50%) and eventually blooms (~150%) after a few short years. Pay the bloom from the beginning but put all the money beyond the minimum payment DIRECTLY toward principal. This is a great way to flip the interest algorithm into your favor.

Best of luck!

I'm a visual person so the idea of a 30 year mortgage didn't make much sense to me until I could see it

[

This isn't exact but it's pretty close.

#GREEN MEANS GONE!

The green Interest lines represent the money you're giving to the bank as a "thank you" for lending you a large amount of cash up front. As you've already figured out, that's at least the same amount as the price of the home!

#TIPS TO BE SAVVY

As much down-payment as is reasonable.

• 10% down means another 10% that you bite away from interest
• Be careful not to put EVERY penny down, always leave room for a rainy day fund (3 months of payments) in case of a disaster or job loss, it's unfortunate but it happens when least expected.

Keep one eye on beating the interest

• If you're a first-time home buyer check to see if you get a perc to buy. When I bought a home I was given an $8k benefit for my area!
• If you can, specify an additional $100 of your payment to be applied directly toward principal. This could eat up to 5 years off your 30 year loan!
• Advanced: Get an Adjustable Rate Mortgage which starts low (~50%) and eventually blooms (~150%) after a few short years. Pay the bloom from the beginning but put all the money beyond the minimum payment DIRECTLY toward principal. This is a great way to flip the interest algorithm into your favor.

Best of luck!