Buying a new home is exciting. But having to pay off that loan can get real old real fast, especially since it can take decades to pay off. That can be depressing for first-time homebuyers who probably have multiple financial challenges — car loans, school loans, credit cards, and smaller starting salaries early in their careers. Luckily, they probably also still have plenty of time to earn and invest.
Still, it’s tough to watch most of your scheduled payments go to cover interest, and very little goes towards reducing the principal during the first few years of your mortgage.