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AlanPavio t1_ixxj3mw wrote

Reply to comment by Brandon432 in Delayed Mortgage Monthly Payment at WF by gundamstar1

It’s amazing that this is said almost every time someone talks about mortgages and interest. The vast majority of mortgages are not simple interest - I think people get used to it being that way with car loans and then assume it’s the same with their mortgage.

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Brandon432 t1_ixxk67f wrote

Right. Even my biweekly payment does not save interest because I pay half the balance two weeks early every month. It saves interest because I make two extra payments per year and pay off the whole thing six years early.

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GaiusPrimus t1_ixxvz9p wrote

This isn't true everywhere, which is most likely the cause why it gets brought up.

Canada is mostly simple interest mortgages.

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