How can it be that this is allowed

Question

That mortgage companies charge their customers three times over what the house costs. If they didn't this foreclosure mess wouldn't be so bad, and more people would be doing well, and maybe even homelessness would decrease dramatically? Example :: 45,000 dollar financed for thirty years at 406.00 a month =146,160.00 I believe that it's insanity. Can anyone explain this for me? This is an actual figure from an FHA officer. I expressed interest in a home that was 45,000.00

Answer 1

i have that problem too...it's ridiculous. people can't afford it so they jack up every one else's....the best thing to do is if you get financed for the home then (if you can) make extra payments a month...for example send a check with the amount owed and $50 or $100 or whatever you can afford over...make them aware that all is to be paid to principal...they also say that if you make 1 extra payment a year depending on the time span of the loan, then it usually pays your loan off a year sooner and you will pay less interest. the beginning of a loan you're paying mostly interest anyway...just a way for them to make money. ugh. it sucks.