Most people know when they’re overpaying the seller as they buy a house. Most people don’t know how how much they’re going to end up paying the bank if they only pay the minimum mortgage every month…
How much is the house worth?
What price was agreed on for the house?
How much is the buyer paying for the house?
Can that be right? Yes, sadly it is.
There is a lot of money to be made in financing charges. Before getting into any new financing situation, consider seriously if you can afford the true value of the item that’s being purchased… and if financing is necessary, what that will cost over the years.