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Old 11-25-2009, 02:34 PM
George
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Default buy or rent?

I am living in a house with two bedrooms and two bathrooms here in Miami, Florida. In two or three years, I have to leave the area because of my business. I need to transfer back to New Jersey. I don't know how much of my mortgage payment will be going to the principal cost? How much to the interest? Should I buy a new house in New Jersey? Alternatively, just rent a house? If the payments are going to the interest, then I might as well rent and not worry about insurance and taxes. What do you think?
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Old 12-24-2009, 04:09 AM
jondiego
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Default Depends on how long you have left on the loan

When you get a loan it starts out that most of your payment goes to interest and as time goes on it is applied more to the principal.

For Example:
First Month of Loan $2,000 mortgage payment. ($2,000 goes to Interest, $0 goes to Principal)
Last Month of Loan $2,000 mortgage payment. ($0 goes to Interest, $2,000 goes to Principal)

It's like a large X if that makes sense. Hope that helps!
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