##### Re: FHA Rules to change around March 31st on Mortgage Insurance!

01-21-2013 07:08 AM

Can you explain to me how a person pays less interest every year on a 30 yr fixed mortgage? My homebuyers class told me the principal and interest paid every month won't change. Am I missing something? If so, please elaborate. Perhaps, less APR but most folks don't even know the full cost to service the loan...I don't. All I know is that the amount I pay in interest and principal every month remains the same over the life of the loan.

The $3600 back from the IRS that I am expected to get every year is based on my unique income level, % interest on a particular home price over the life of the loan, and taxes paid. Each person will get a different amount back. My info came from my mortgage broker and I ran the numbers across my new loan officer after switching lenders and he agreed. I'll be sure to post my refund amount in April of 2014 (I will put a reminder on my phone )

My loan is costing me approx. double the purchase price; based on my loan paperwork, I will have paid over $600,000 after 30 years for $347,900 with 4.125% interest.

Please explain JM-AM why the amount I pay in interest is going to change when all the educational materials I have read say that the principal and interest paid each month will be the same over the life of a 30 yr fixed loan? I'm really confused.

Sorry for the typos in my previous post, I was falling asleep while typing last night.

The $3600 back from the IRS that I am expected to get every year is based on my unique income level, % interest on a particular home price over the life of the loan, and taxes paid. Each person will get a different amount back. My info came from my mortgage broker and I ran the numbers across my new loan officer after switching lenders and he agreed. I'll be sure to post my refund amount in April of 2014 (I will put a reminder on my phone )

My loan is costing me approx. double the purchase price; based on my loan paperwork, I will have paid over $600,000 after 30 years for $347,900 with 4.125% interest.

Please explain JM-AM why the amount I pay in interest is going to change when all the educational materials I have read say that the principal and interest paid each month will be the same over the life of a 30 yr fixed loan? I'm really confused.

Sorry for the typos in my previous post, I was falling asleep while typing last night.

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