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CHAPTER 3

YOUR MORTGAGE

The Real Cost of Buying Property

What does a property cost? This is one of the most important questions investors ask, and, just as a stock market investor is interested in the price per share, real estate investors need to know how much their investments will require in capital.

This seemingly straightforward question is actually far more complex. Because you will probably be financing a major portion of the total purchase price, your real cost is not the sale price of the property but the total you pay over many years. Cost has more to do with your interest rate than with the price the seller wants.

For example, a 30-year ...

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