Here’s how it breaks down...
With the average interest rate on a 30-year, fixed-rate loan sitting at 4.44% as of this writing, someone purchasing a median-priced home with a typical 20% down payment would owe $169,390 in interest over the 30-year life of their mortgage — or $5,646 a year in interest alone.
Now add real estate taxes to that expense...
The average American household spends $2,375 on property taxes for their homes each year, according to the U.S. Census Bureau. That’s another $71,250 over the life of a 30-year mortgage. Worse yet, these payments continue even after your home is “paid off.”
And in many parts of the United States these figures are substantially higher.
What does this mean to you? It means even if your mortgage is completely “paid off” you still don’t really own your home.
Why? Because if you miss payment on any taxes you risk having your home foreclosed and taken back by the bank.
This does not bode well in an environment with unprecedented economic uncertainty and the highly probably collapse of many fiat currencies like the U.S. dollar.