...and you thought Tysons had traffic now.

[WRXtranceformed]

But, over time you're still paying an enormous amount in interest to the bank. There is no way around it. And THAT Is throwing money away in the worst sense. Your total bill for that $600k house is almost $1.3 million. Not including property taxes and HOA/Condo/etc fees.

RJ what the fuck are you talking about? You're not going to spend anywhere close to twice the cost of the house with interest!

Here are some numbers, which is really pushing it b/c this is my day off =P

$600,000 loan, we'll be REAL generous and say you're doing 100% financing, and let's be real conservative and say you have a 7% interest rate on that loan, locked in for 30 years. The total amount of lifetime interest that you'd pay on that loan would be $42,000. And your interest payment would gradually decrease over the years as you pay off more and more of the principle. This is called negative amortization.

You're paying more of that principle in the first few years, and I think this is what you're hinting at.

The way you calculated it would be that much every single year of your 30 year mortgage term.

If you are in it for the long haul, maybe. But prices are still dropping....

Are they? I competitively shop every builder in the area weekly and they're telling me otherwise. Maybe resales are dropping their prices because they're desperate to get into a new home, but like I said, those are slowly dwindling off of the market right now.

How are you going to make money? I'm really lost here. Owning a home is a very long term investment, and its not an investment in the traditional financial sense.

Almost every single one of our homeowners who has purchased from us and previously owned a home for anywhere from 2-10 years has made money off of their purchase. It's all about where and when you buy.