StrawberryPigtails@lemmy.sdf.org to News@lemmy.world · 10 months agoA 30-Year Trap: The Problem With America’s Weird Mortgageswww.nytimes.comexternal-linkmessage-square99fedilinkarrow-up1169arrow-down123
arrow-up1146arrow-down1external-linkA 30-Year Trap: The Problem With America’s Weird Mortgageswww.nytimes.comStrawberryPigtails@lemmy.sdf.org to News@lemmy.world · 10 months agomessage-square99fedilink
minus-squareEarthwormjim91@lemmy.worldlinkfedilinkarrow-up6·10 months agoAh yes it’s so much worse than other countries where that interest is 3%, oh wait no now it’s 7%, oh never mind it’s 5% now, oh hold on now it’s 12%. A rate locked for the entire term of the mortgage is immensely better for the buyer than a rate that can change every 5 or so years.
minus-squarejoenforcer@midwest.sociallinkfedilinkarrow-up4arrow-down2·edit-210 months ago $100k house Oh, you sweet summer child… Also, please come back when you understand opportunity cost. I will GLADLY pay anyone a 3% rate to front any amount of money I already have.
minus-squareDkarma@lemmy.worldlinkfedilinkarrow-up1arrow-down3·10 months agoNo shit…lol they have no clue how interest works
minus-squareAlDente@sh.itjust.workslinkfedilinkEnglisharrow-up2arrow-down1·10 months agoPayment = rate*(loan amount)/(1-(1+rate)^(-number of payments)) Rate =.03/12 = 0.0025 Payment = 0.0025*100000/(1-1.0025^(-360)) Payment = $421.60 Therefore, $151776 will be paid in total, or $51776 in interest.
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Ah yes it’s so much worse than other countries where that interest is 3%, oh wait no now it’s 7%, oh never mind it’s 5% now, oh hold on now it’s 12%.
A rate locked for the entire term of the mortgage is immensely better for the buyer than a rate that can change every 5 or so years.
Oh, you sweet summer child…
Also, please come back when you understand opportunity cost. I will GLADLY pay anyone a 3% rate to front any amount of money I already have.
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No shit…lol they have no clue how interest works
deleted by creator
Payment = rate*(loan amount)/(1-(1+rate)^(-number of payments))
Rate =.03/12 = 0.0025
Payment = 0.0025*100000/(1-1.0025^(-360)) Payment = $421.60
Therefore, $151776 will be paid in total, or $51776 in interest.