Originally posted by iwik
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The fact is a table mortgage charges the interest it does on the money outstanding.
By paying a regular amount the capital payment slowly increase while the interest payment slowly reduces until,
at the end of the term, all monies are paid back.
You pay interest on the money outstanding at any time so I can't see how it is a rip-off.
It may not be the best option in your case but still isn't a rip-off!
The strategy of buying 20 and paying off 10 when the capital values have risen enough works best in a rising market.
The faster it rises the faster it works.
In a flat or falling market it doesn't work!
Some people forget that these forums aren't frequented by Aucklanders only - there are actually other people in this country.
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