Watch the video above and answer the question when you're done.reveal question
Which of the following statements is true?
- 1They made the right decision and saved money long term.
- 2They basically broke even financially long term.
- 3Those 90 days cost them thousands more over the long term.
They started out very well with a $5,000 discount in the price of the home. Unfortunately, that’s where the benefit ended. Why? Well, as rates rose, so too did their monthly payment and over time, the cost of that really added up. In fact, the roughly $110 higher payment every month means that over the 20 years they would own the home that they would pay over $20,000 more and that’s even after subtracting the difference in the purchase price. As you can see, sometimes saving a little money can really be quite expensive!