Your parents just decided to buy the house of their dreams. The agreed price between your parents and the house seller was $200,000. However at the "house closing" (the meeting at which all papers are signed and ownership is legally transfered ), your Dad sees that he will be making payments amounting to over $450,000 over the next 30 years. When he sees that, he starts to walk out saying: "I'm going back to renting! There's no way I'm paying $450,000 for a $200,000 house.' Just then, you look at the papers and shout: "Dad. wait! You're not really paying $450,000. It's a lot better deal than you think! Here's why!"