And why would it ever be a good idea to borrow if you can pay cash and pay no interest to the bank?
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It used to be you’d get tax credits for the interest payments, so if you earned $40k/yr and paid $20k/yr on interest, it was like you earned $20k/yr for taxes. But Trump limited that to a maximum of $10k/yr for interest deductions, so you don’t want your interest payments on your loan to exceed $10k/yr.
There are great online “mortgage amortization” calculators which show you payment numbers. The goals are to keep cash on hand for emergencies like earthquake damage or flooding damage so you won’t lose your house. Most insurance plans don’t cover these for a reasonable cost so unless you are in a known area, most people opt out of coverage. Since cars don’t get a tax deduction for interest, paying cash for a car beats paying cash for a house. Also, credit cards charge even higher rates, so pay off your credit cards first, then your car, then your house.
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