The interest on a 30-year mortgage exceeds the principal. Why do some people want to be "house slaves"?

Are most people still willing to be house slaves? Yes

Let's talk about the interest on this mortgage first. Most people choose the repayment method of equal principal and interest, so the amount to be repaid every month is the same, and the interest for 30 years adds up to a huge sum. But we must think about it. In the case of inflation, the total interest expenditure calculated after 30 years is not equal to the total interest expenditure now. This total expenditure includes the cost of inflation.

Secondly, because the monthly mortgage is fixed, the monthly expenses are also fixed. With the growth of age knowledge, our wage income level will be higher and higher. In this case, the repayment cost will have less and less impact on our lives. When we are short of money, only banks are willing to lend us money to buy a house. This money is subject to interest, but this interest rate is definitely not particularly high.

If you are good at managing money, you will find that the income you get from taking money to manage money is sometimes higher than the interest rate of mortgage. In this case, the income can already offset the interest expenses of the mortgage. In this way, you will find that the interest on the mortgage is well spent.

In addition, the house appreciation rate is very fast. If you take out a loan in mortgage to buy a house and the house price has just gone up a lot, the house you buy will appreciate a lot. This appreciation cannot be offset by saving money for a year or two. Obviously, even if you are a long-term house slave, it is still necessary. Rents and wages will go up, but mortgages will not. In this case, mortgage is a good deal.

When a house needs to be returned, such pressure will make everyone work harder to make money, which is also a good thing.