Money
The median house cost in America is $414,000. Average American salary is $66,622. Most Americans die in debt, so inheriting assets in order to afford to buy a house outright is not a possibility for most Americans. Buying a house outright would also do nothing for your credit. Unlike a mortgage loan would. Buying a house requires a mortgage loan. Average mortgage rate for 30-year fixed mortgage loan is 6.85%. With these numbers, total interest if no additional payments are made would be $562,600.92. Total payoff amount $976,600.92. While the interest decreases, the principal increases. 20 years in is when your interest and principal amount are the same. This is assuming a lot: no medical debt, no disabling life event, year-over-year salary increase, stable economy without significant inflation, maintenance of 2-person household income, babies for tax credits, etc. I don’t understand how I’m not supposed to send myself to the morgue.
