Quote:
Originally Posted by Hog's Gone Fishin
So the bottom line is a 30 year loan is a 30 year loan unless you have the ability to pay it in full at some point. I've never seen this discussed or explained , EVER . And I've read tons of books and info.
So , In hindsight the problem lies in having a 5yr ARM instead of a fixed loan for the whole term it appears.
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So what you are saying is, even if you make extra principle payments over the years, it doesn't move up the end date of your loan, it just adjusts the remaining balance of principle/interest over the existing 30 years of payments.
Loans are all designed to screw the borrower. The same way that its all heavy interest to Principle ratio that declines slowly. even if you pay it off entirely in one chunk sum at the midpoint, the bank gets like 70 percent of the principle total established at the onset.