Buying a home has long been considered the hallmark of the American Dream. But one homeowner’s viral TikTok is sparking debate after she laid bare the true cost of her mortgage — and why she believes the system is rigged against ordinary buyers.
Alexis (@femmefranktank) shared her family’s refinancing experience in a video that has since drawn widespread attention. In it, she revealed the staggering gap between what homeowners pay and what actually goes toward their mortgage principal.
“My husband and I refinanced our mortgage today because interest rates dropped and it was enough to save us 300 bucks a month,” she said. “However, I have in my hands the amortization schedule … and I want to use this to talk to you about why home buying in America is an absolute f—ing scam and why this will be the last house we ever buy in this country.”
$285,000 Paid, Only $50,000 Toward Principal
Alexis explained that although her family’s monthly mortgage payment is $5,700, after 50 payments — totaling $285,000 — only $50,000 had gone toward reducing the principal. The rest, about $230,000, went straight to interest.
“The math ain’t mathin’,” she said. “My very first payment — $4,500 payment — $3,700 of that goes to interest. And every month after that, only $4 extra of your payments goes towards principal.”
Under the terms of her 30-year loan, Alexis calculated that the total cost of her $784,000 home would balloon to $1.6 million once interest is included.
Refinancing: Relief or Another Trap?
While refinancing often promises lower monthly payments, Alexis argued that the benefits are misleading.
“Refinancing is also a f—ing scam. Because you claim that you’re saving me money, but in the end, you always go and get your money back,” she said.
Despite lowering her rate from 6.2% to 5.6%, refinancing increased her balance from $784,000 to $795,000 due to fees and restructuring:
“Even though over the next 12 months I’m going to make roughly $54,000 in principal and interest payments … according to the amortization schedule, I won’t even have paid down the mortgage a total of $10,000. Enough for nothing.”
Calling Out the Banks
For Alexis, the bigger issue lies with what she calls predatory lending practices.
“The point is I’m calling out the banks because they are f—ing ridiculous,” she said. “Home buying in this country is an absolute scam. And I hate that the only other options are rent, from someone who’s paying a mortgage to the same bank, or be homeless.”
She noted that banks not only collect enormous sums through interest, but also front-load loans so that borrowers spend years paying almost exclusively interest before making meaningful progress on their principal.
“First of all, when you come to closing, we brought $7,000 to closing. They make you pay $3,500 in upfront interest,” she explained. “So not only are your first 12 payments horrendously just put towards interest, but then you have to bring extra money to closing just to pay interest upfront.”
Planning to Exit the U.S.
Alexis said her family plans to sell their home when her husband retires in 2030 and leave the United States altogether.
She hopes that after paying down the mortgage by $50,000, they might sell for $850,000 — though realtor fees could cut heavily into that margin.
“At best, maybe we’ll be able to sell our home and leave the U.S. with $50,000 in our pocket,” she said. “It is not worth it.”
Not many people agree with Alexis’ take on home buying in the U.S. with one person remarking, “It’s 100% not a scam! It comes down at first buying a house at that price, every country in the world does it. I’m here in New Zealand houses here in Auckland 1.2 million for a 3 bedroom. 🤷♂️”
