Friday, June 24, 2011

How do mortgage interest rates work?

My mum pays around 7% interest rate on the mortgage, yet she said �200 a month goes on the house price, where as about �700 a month is in the interest? How on earth does that work though if the interest rate is only like 7%. Isn’t that like a 350% increase and not 7%. [...] http://bit.ly/mf6e38

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