Saw the news that the number of active homebuyers in the US dropped to the lowest level Redfin has recorded. Not really surprising when you look at what financing a house costs right now. Something I saw explained this pretty well. Say someone borrows 250k on a 30 year mortgage at 7%. That does NOT mean the bank takes 7% of the original 250k every year for 30 years. The interest is charged on the remaining loan balance as you pay it down. At 7%, the principal and interest payment on that loan is
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