Mortgage Amortization
Disaggregate monthly housing costs into equity accumulation and capital drain (interest).
Monthly Payment
Amortization Geometry
In early years, payments are mathematically front-loaded with interest. This creates a severe equity accumulation disadvantage compared to direct capital asset investments unless housing appreciates rapidly.
Frequently Asked Questions
- What are the core assumptions?
- A fixed interest rate without refinancing optionality, excluding taxes and insurance.