sorry but you're incorrect also.

assuming $256,000 mortgage for

**3-year term/25-year amortization** @ 4.89% fixed:

http://www.mackenziefinancial.com/calc/jsp/MortgLoanAmortScheduler/mortgloanscheduler.jsp
total mortgage payments (not including maintenance fees, property taxes, etc): $53,025

total principal repayment: $17,018

total interest paid: $36,007

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back to the original thread, if we assume $256,000 mortgage for

**5-year term/25-year amortization** @ 4.89% fixed (3 and 5 year rates seem to be the same as most FI are offering discounts on 5-year terms):

http://www.mackenziefinancial.com/calc/jsp/MortgLoanAmortScheduler/mortgloanscheduler.jsp
total mortgage payments (not including maintenance fees, property taxes, etc): $88,375

total principal repayment: $29,814

total interest paid: $58,561

so during those 5 years, one has 'paid themselves' $29,814 (ie. principal repayment) while almost $59K has gone to interest paid ... just like paying a landlord but the landlord is the bank, to which you have a contractual liability/obligation of $256,000.

the main issue for the debate of whether it's better to buy now, or to rent and wait has to do with one's assumption of where they see RE prices will be:

**if there is a 10% decrease in 5 years**, well one has LOST ALL of the principal repayments and you're no better off but there is still the initial $64,000 DP ...

**still have ~20% equity;**
**if there is a 20% drop in 5 years**, one has LOST ALL of their $64,000 DP but still have paid down $29,814 ...

**~10% equity but will that be sufficient to qualify for mortgage renewal ?!?;**
**if there is a 30% plunge in 5 years**, one has lost $96,000 which means

**ALL of the $64,000 DP and $29,814 in principal repayments are GONE + NEGATIVE EQUITY !** ! !