Let’s say hypothetically, you take a $1M loan for a house at 4%, 30 year term. Interest for full term is $1.2M. ... and after 10 years say you have paid $360000 in interest and roughly $200000 in principal. And now assume your home’s market value is $2M. You want to sell the home, what is the net cash you can expect in hand at the end of this sale?
After 10 years:
Principal left on loan: $800000
Interest left on loan: $840000
Is it: $2M - $800000 - $840000?
Or can you avoid the remaining interest ($840k) somehow (atleast some of it, if not all)?
In your example, the money you would walk away with is $2m - $840k - closing fees