Fact: A 30 year loan at 3.625% for $300,000 has a fixed payment of $1368.
The 1st payment is made up of $906 interest (66%) and $462 principal (34%).
1. It will take 10.5 years before the above equation will have $684 principal and
$684 interest. Compare that with a 20 year loan which has 50.4% interest
and 49.6% principal as the makeup of the first payment. It will only take 4 months
to be equal. The 15 and 10 year fixed loans are even better than that.
2. If you do not get any benefit from the interest on...