Albert Einstein was a smart guy. And speaking to interest, he said:
Interest is the eighth wonder of the world. Those who understand it, earn it. Those who don’t, pay it. Albert Einstein
Now we’ve seen how mortgage payments work. And we’ve seen how much interest you’re actually paying for a mortgage.
So, as far as “understanding” goes…. Shawn:
- Is paying 85% interest in a payment
- Is paying over 80% interest for 5 years
- Is paying over 50% interest for 20 years
- Is paying $318,861 to interest
- Is paying $568,861 for a house the he “bought” for $250,000…….
Apparently Shawn doesn’t understand interest.
Let’s dig a little deeper into interest.