Posted 8 months ago on June 10, 2018, 1:56 p.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
After 5 years of payments on a 30 year fixed rate $250,000 mortgage you have:
at 4% and $1193.54/month paid $47,731.07 in interest and the principal remaining is $226,118.67;
at 5% and $1342.05/month paid $60,095.11 in interest and the principal remaining is $229,572.11;
at 6% and $1498.88/month paid $72,568.46 in interest and the principal remaining is $232,635.66;
If your home has appreciated by $50,000 in 5 years, the bank has increased it's wealth substantially. That's why banks, the biggest winners, so willingly underwrite real estate inflation and developer operations. The most recent buyer is the always the biggest loser in this "creation of wealth" scheme. More and more foreign money is going into American real estate and, as with all investors, into lending to America's hopeful schmucks.
And then there's the rest of capitalism:
"Volumes II and III of Marx's Capital describe how debt grows exponentially, burdening the economy with carrying charges. This overhead is subjecting today's Western finance-capitalist economies to austerity, shrinking living standards and capital investment while increasing their cost of living and doing business. That is the main reason why they are losing their export markets and becoming de-industrialized...."