| « Chasing Money & Chasing "More" | Kempinski Resort Sanya Video hosted by Mario Cavolo » |
Financial Reality Now: Wakeup To Banks Stealing You Blind With a 30 Year Mortgage.
...here in Shanghai had a 15 year mortgage on an apartment. By the end of the first four years, 25% of the principal had been paid down, the rest going to the bank's profit, your interest expense on the loan. So for example, on a $300,000 mortgage, you would have $75,000 MORE EQUITY after only 4 years of payments. That's fantastic, that's equity in YOUR pocket. An average of 50% of your payments during the first four years of payments went to YOU, YOUR HOUSE, YOUR POCKET.
But contrast that to a 30 year mortgage. In the first four years, 90% of your payments go the bank and it only improves from that point very slowly for the next 5 years.
A 15 year mortgage payment is only 15% higher than a 30 year mortgage payment. In China, NO ONE gets a 30 year mortgage because the bank's don't even offer it. Debt is not encouraged and if you do get a loan, it should be a short as possible. That's the attitude toward debt in China.
One thing you can do now that is simple and easy, make an extra payment each year. It is painless and will save you thousands in interest expense.
Wake up. They want you to think its not big deal. Its convenient. Its ok. Wake up my friend. Its not ok. Its time to start thinking differently.
Part II.
STOP Living a Credit-based Lifestyle.
Stop letting the American system brainwash you into thinking it is normal. For over 13 years since 1995, I have not accumulated one penny of credit card debt. In the previous 15 years, I had accumulated far too much debt and I paid the price in many ways.
Pages: 1 · 2
2 comments
Comment feed for this postComments are not allowed from anonymous visitors.
