I took out a $100,000 loan on my house on a variable rate loan at 4.5% for 30 years. For example, see this calculator.
Assuming the interest rate stays the same, the final cost will be $145,000. In the five years, I'd have payed around $7,000 in principle and $16,000 in interest.
Now, let's say after 5 years, the interest rate goes up to 10%, what happens to the loan?
Would it be the same as if I took out a new loan at 2020 for 93,000 at 10% for 20 years?
In that case, my full payment would be $228,818+$23,000.
Had I payed 16,000 in principle and $7,000 in interest, I'd be paying $192,000+$23,000
Did I get messed over by paying interest first?