Quote:
Originally Posted by Silver14
You may want to read up on amortization schedules.
https://www.bankrate.com/calculators...alculator.aspx
"Initially, most of your payment goes toward the interest rather than the principal. The loan amortization schedule will show as the term of your loan progresses, a larger share of your payment goes toward paying down the principal until the loan is paid in full at the end of your term."
What happens to most does not happen to all. I agree with the general idea of your post but not the absolutes. Statistically there will be outliers that will not spend the extra money. |
My wife has a long history in the mortgage industry and I have done my research. Interest appears front loaded because there is a larger amount of principle due. The fact is that they give you a payment to pay back and the lower the principle gets the lower the interest will impact your payment.
As for the absolutes, I’m trying to speak as a statistical statement. Yes there are outliers. Those that do “beat the system” are so minimal that it is fair to speak pretty absolute though. What I’ve been fortunate to find is a method explained by someone who is fabulously wealthy now and has become so by trying to teach others how to do what he did to become so wealthy so they can be to. From research done from him and others on how to become rich, the fastest, most stable way to do so is to eliminate debt, live within your means, and save money in good investment platforms. Most millionaires did not inherit their money or win it in a lottery, they earned it.
Also, a millionaire by dictionary definition and not politician definition, is someone who has a net worth of one million or more dollars. Without going into politics, the whole class warfare stuff is quite sad.