The amount of interest you pay on a mortgage is criminal

@davedelong why is that? It is not a simple interest loan, or a chattle mortgage.

@jeffmc Over the lifetime of this mortgage, I'm paying 2/3 of the entire principal in interest.

That seems hugely excessive.

@davedelong It does seem that way. Banks lend you money for 15 or 30 years to buy a house. Since it is a long time to pay it back and to service it (there is a cost, albeit not a lot), they charge you outrageous interest. Caplitalism is only fair for the wealthy.

But for now you are also allowed to deduct that interest from your net income on taxes. (You cannot do that on simple interest loans). TBH, the best way to avoid it is to have no mortgage.

@davedelong That interest can triple the cost of a home over 30 years. I’ve had too many mortgages and I think I’m done with home ownership at this point.

@KevinHoctor @davedelong I’ve felt the same way. Rented, owned a home for a decade, and now I’ve been renting for 8 years. I think I’ll buy soon though, because dumping money into a hole sucks too.

@pixel @davedelong The difference for me is that renting an apartment has cost less than owning and maintaining a home. Yes, I made some of that back when I sold my last house, but there was a lot of “dumping money” on the house too.

@KevinHoctor @davedelong so far that’s where I am too. There’s definitely a PITA factor as well.

@KevinHoctor @davedelong That’s how compound interest works :-) I dunno, I pay $2K/month for a place that would cost me $5K to rent if I moved in now. And I (well, used to) get a reasonable tax write-off on it. The new $10K SLUG limit is going to suck.

@wklj @davedelong It’s a moot point. I can’t afford to buy anything in San Francisco right now. 🤨

@KevinHoctor @davedelong Yep. I wouldn’t be able to either, but I bought 14 years ago. It looks like my townhouse has roughly tripled in value during that time as well, so while overall I got pantsed on the stock I sold 14 years ago for a down payment (up >> 10x), at least the thing it bought went up 3x :-/

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