I make a decent salary (low six figures) the ex gets 25% b/c my state is communist. My brother. same issue. Combined we make a very good salary. however, the housing mkt is so out of whack where I live. Just yesterday a house went up for $799,000 the teaxes are $15k/yr. You need 20% to put down or else you get PMI (bs tax). Take a loan from the bank at 7%. I might as well borrow from the mafia. We been renting an apt at $3k/month which is insane!!!
Of course they're usuary. Most debt in the USA is. What about the interest rate on credit cards? Yet, so many people don't even give it a thought.
Example 1 $500K 30 yr. mortgage at 4% [ fixed rate amortized ]
Monthly payments are $2,387.08
In this first example we will see what the annual percentage rate [ APR ]
is when a mortgagee sells their property after making payments for 8
years.
At year 8 amounts paid:
$229,159.68 Total Payments [ Pymts ]
$81,347.94 Applied to reduce Principal
$147,811.74 Paid in Interest [ Int ]
The percent interest paid [ %Int ] is just the Int divided by the Pymts
[ e.g. I loan you $100 you pay me $110 in 8 years or less is a 10% loan]
%Int = Int / Pymts x 100 = 64.50%
The APR is the percent of interest paid against the principal divided by 8
years.
APR = Int / Pymts / 8 x 100
APR = $147,811.74 / $229,159.68 / 8 x 100 = 8.06%
Income Tax and interest in all transactions should be abolished.
Example 2 $500K 30 yr. mortgage at 7% [ Today’s fixed rate ]
Monthly payments are $3,326.51
In this second example we will see what the annual percentage rate [ APR ] is when a mortgagee sells their property after making payments
for 8 years.
At year 8 amounts paid:
$319,344.96 Total Payments [ Pymts ]
$52.541.39 Applied to reduce Principal
$266,803.57 Paid in Interest [ Int ]
The percent interest paid [ %Int ] is just the Int divided by the Pymts
[ e.g. I loan you $100 you pay me $110 in 8 years or less is a 10% loan]
%Int = Int / Pymts x 100 = 83.55%
The APR is the percent of interest paid against the principal divided by 8
years.
APR = Int / Pymts / 8 x 100
APR = $266,803.57 / $319,344.96 / 8 x 100 = 10.44%
I make a decent salary (low six figures) the ex gets 25% b/c my state is communist. My brother. same issue. Combined we make a very good salary. however, the housing mkt is so out of whack where I live. Just yesterday a house went up for $799,000 the teaxes are $15k/yr. You need 20% to put down or else you get PMI (bs tax). Take a loan from the bank at 7%. I might as well borrow from the mafia. We been renting an apt at $3k/month which is insane!!!