That's just not true. To buy my house right now on a 12% loan for 8 years, the monthly payment would be $10,000. If someone were to buy it right now on a 6% loan for 16 years (trying to match your numbers to the current state of the market), their monthly payment would be $5500. And they'd pay just a few thousand dollars less than I did in interest. Why? Because prices went up along with interest rates. For what you are saying to be true, prices would need to drop when interest rates go up, but that isn't the case. Most people can't afford to drop $10k a month on a loan just to save a few thousand long-term, let alone $5.5k. My monthly payment is less than half that.