Loan Guides•6 min read
Total Interest on a Loan: What You Really Pay
Don't just look at the monthly payment. Understand the high cost of interest over a 15, 20, or 30-year term.
The sticker price of a loan is just the beginning. The real cost is found in the total interest paid over the life of the debt.
The Interest Trap
On a 30-year mortgage, you might end up paying more in interest than the actual house was originally worth.
Compound Interest in Reverse
Every dollar you borrow costs you money every single month. Shorter terms or higher payments are the best ways to fight back.
How can I pay less interest?
The two most effective ways are choosing a shorter loan term (like 15 years instead of 30) or making extra principal payments whenever possible.