Ask bank for loan

>they trick you into refinancing
how would that work exactly?

> only once they collect most of their interest do you start actually paying off the house
you're paying down principal with every payment, especially if you pay more than is scheduled.. EVER

>at which point they trick you into refinancing or a HELOC, so you start paying interest all over again
were you born one of the dumb niggers or did you become this way?

Oh come on, you haven't seen all the TV commercials telling you to refi? It's been all over the radio for the last five years. Rates are low! Refinance now! Why would a bank want you to refinance to a lower interest rate if it would hurt their profits?

Yeah if you took out a mortgage at 7.5% in 2008, and refinanced in 2010 at 3.8%, you would save a lot of money. But if you're 15 years into your mortgage at this point, even though your APR is 7.5% (which it roughly was in 2002) you would be shooting yourself in the foot to refinance now since you've already payed the bulk of your interest.

Interest on home and car loans is front-loaded: you are paying mostly interest at first. On a 30 year mortgage, your first year of payments is like 90% interest. Your last year of payments is over 90% capital.

>Oh come on, you haven't seen all the TV commercials telling you to refi? It's been all over the radio for the last five years.
not murrican sorry, i don't know a thing about most of your jewish tricks.

i had a similar experience at a bank.
my student loan has a variable rate now at 3.75% back then it was maybe 5%. so the bank chick offered me (her family name was "devil" btw i kid you not) to replace my student loan to a fix term fix rate loan of 11%.

i was stunned, because with student loan you got immediate and unlimited option to reduce your debt base and that alone makes it infinitely superior to almost all other loans. but at an 11% rate and i could tell this was as you described a front-loaded loan.

so i asked her "is there such a stupid son of a bitch that actually goes for this?" "yes of course lot's of people they just want to know when their payments end instead of paying it forever..." i looked at her like she was from an other planet and didn't say anything to that.

if you pay minimum on student loan sure you never pay it back, but there is no penalty and no pressure on paying it back fast as possible. i hope she was just lying and nobody actually did that deal but who knows...

the refinance makes the bank money upfront but will cost them money in the long run (IF you pay your loan off; which most dont due to new house, bankruptcy, death and so on). 30 years is a long time

but yes you are right about the high interest up front. on my house 50% is interst, 25% princ, 25% tax/insurance/otherBS.

if you refi you start back over at high interest part of the loan but if you do ride the whole thing out you will end up paying less in the long run

>but if you do ride the whole thing out you will end up paying less in the long run
Au contraire, mon frere
In my above example (7.5% 30 year on 300k) you would pay 455k in interest in total.
If you refinanced at year 15 and took on another 30 year loan at 3.8% interest, your total interest paid would be 606k. Significantly lower interest rate but still cost you a ton of money to refinance, not even counting all the fees they charge you to do so.

If you took a 15 year loan at this point your total interest would be 375k so yeah that would save you money. I'm gussing if you refi around the 18 or 19 year mark, even taking a 15 year loan won't save you money.

>Bank doesn't have to pay interest on the money it gives you that it doesn't even own
But that's wrong you fucking retard

>comparing a 30 loan to a 45 year one
by your own math a 30 year loan could be called 15k per year in principle but a 45 year loan is 13.5k per year

none would refinance after 20 year mark as you are paying bulk principle.

principle meant to be interest

>they only need 30k to lend you 300
> only once they collect most of their interest do you start actually paying off the house
>at which point they trick you into refinancing or a HELOC, so you start paying interest all over again
You're a retard. Go back to /pol/.

>You want to buy a house
>You are poor
>You go use someone else's money
>You complain

Then don't buy a $300k house you faggot. You can get a 2 bedroom for $50k here. or rent a one bedroom for $6k a year until you can afford a house outright.

>houses cost the same everywhere

The shittiest piece of shit house in the darkest depths of niggertown would still be $200k+ in this city

Nobody's telling you to stay there pham.

>banks
>ever

Will you stop posting this I'm so tired of seeing it in every thread if you aren't contributing then don't post

Op they pay interest (low) on your savings account durr

You do realize most of American finance and politics is based from protestant views and not Jewish right

Are you younger than 18?

You do realize when you refinance, you aren't financing the entire house again.

I owned a house I got a mortgage for at 289k. I refinanced when I only had 110k left to pay on. I refinanced for 110k not 289k.

You do realize Protestantism is a branch of Christianity, which itself came from Judaism?

Jewish physics basically

sometimes ya just gotta endure the darkest depths of niggertown, as my grandpap always said

Banks pay the Fed funds rate on overnight loans from other financial institutions. Stop being daft.

well if you care that much just pay off your loan sooner

fuck off ron paul. nobody cares about this shit anymore. fucking neckbeard.

>Not using your HELOC to buy more property to generate more rental income and go infinite

Stay pleb

Everything

its called being a safe broker.

Hell I do loans for mortgages and its the same shit except only way we beat the banks is they offer us way lower rates than they have because we do all the work 3x as fast.

>rent

Literally throwing money own the toilet, great advice!

stupid assholes that say this have no idea how the market works.

my landlord just called us and we agreed on a raise (he didn't raise for 5 years), it could have been much much worse our rent is however now 0,46% from 0,38%. i would be a fool to even consider buying under 0,5% and i would be a fool not to buy above 1%.

but whatever you retards want to spout without any thought.

>Borrowing $300,000 for a house that won't be worth half that when the market collapses and be stuck paying on it for 30 years (thus paying really around $500,000) because you're a retard with money.

>Moving somewhere else and paying $6,000 for two years before being able to essentially buy a house outright for $50,000

>$62,000 + a house in 2 years is somehow throwing money down the toilet unlike $500,000 for a house in 30 years.

Just the way the world works goyim. Accept it.

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