All my mortgage payment goes to interest!

[followme]

It's so sickening... literally... no it does make sick... when I look at my online payments for my mortgage. I am paying a LOT of money each month and probably 90% goes straight to interest and taxes. It's no wonder no one can ever get ahead. You are much better off if you can afford to buy your home outright.

[NW Admin]

This has been so true for quite a long time. However, in the last couple of years, this seems to have improved. Thanks to changes in the economy forcing the government to push for lower interest rates. When my ex-husband bought our first home, we got a 4.75% interest rate and I was happy to see that we were actually making a dent in our mortgage each month. That was opposed to the mortgage that my parents had with a higher interest rate. I saw how much of their payments were actually applied to the principle and it was terrible. You almost couldn't stand to look at it.

I have a friend who got a special USDA government loan based on her income and being a single mother. She got a 1% interest rate on a $140,000 home. I was shocked to hear about it, but super happy for her. That is one heck of a deal. Made me wish I was a single mom for a minute.