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Why do I pay so much intrest per payment on my house?

Posted on: 05th Oct, 2010 04:46 pm
If i had known over 400 dollars of my 600 dollar a month payment would go to interest i would have just kept renting. Why are they allowed to do that? It seems that if the government really wanted to help people they would put an end to that. It would allow people to pay off their loans faster and then spend more money on other needs. It seems like GREED is the way of mortgage companies. It is like they are saying, take all we can as fast as we can in case they pay the loan off early.
Hi shortnsweet,

When you take out a loan, you will have to pay the interest payments. You cannot avoid it. The lender must have given you an interest rate and the interest payment will be charged as per that rate. The rest of the amount will go toward the principal amount. If you want to get rid of the mortgage soon, you can make extra payments toward your principal balance.

Thanks
Posted on: 05th Oct, 2010 08:48 pm
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