Assuming a 15 year term at the current interest rate, how much will each $1000 I put away save me in interest (on average) on a $150,000 home with 10% down?
I just want to know when I put away $1000 for my place, how much am I REALLY putting away (calculating in savings on interest).
Thanx math guyz !
Save for your own place, you snivilling git! Or die a thousand deaths at the hands of an unwashed goat herder!
I’m not very good at math, but I’m one hell of a motivator
I’m too lazy to do the math now, but as for motivation:
One good reason to own your own place is that you can close the shades and you and your significant other can chase each other naked all through the house.
I’ll get out my Hp-12C in a moment. In the meantime, so sorry about the poor motivation. I was taught by John Cleese.
But, some clarification. Are you saying saving $1000.00 per month or any time frame?
Are you asking basically, what builds equity in my home quickest, large down payment or doubling up on payments? Or is it, what results in most cash in my hands while paying off new home?
I think the question is: for each additional $1,000 of downpayment money, how much is ultimately saved on the mortgage costs, based on a 150K valued home.
Can’t answer this without an interest rate.
7%!
"I think the question is: for each additional $1,000 of downpayment money, how much is ultimately saved on the mortgage costs, based on a 150K valued home.
Can’t answer this without an interest rate."
Yes, and 7% !
You’d be financing $135,000 at 7% for 15 years. That would give you a payment of about $1,213.42 (not counting taxes and insurance). Financing $134,000 would save you about $617 in interest. Sort of depressing. On a 30 year loan it would be about 3 times that amount.
Another consideration is that if house prices are going up in your area a good part of your savings will just go to cover this and not reduce your interest expense very much at all. If they are going up faster than you can save, then you’ll be losing money.
If you can afford it a good plan is buy the house now and pay an additional $200 per month on the principle. It will cut your payments down to 141 months instead of 180 and save you a little over $20,000 over the life of the loan.
If house prices rise over the length of your ownership, let’s say 5 years at 5% per year increase, you would have just over $100,000 equity in your home to put toward your next one.
7% seems awfully high. I just refinanced at Bank Of America and the 15 year rate was 5.375%. You might want to check around.
Listen, dear.
Rent=dumping your money down the drain. Throwing it away. Making someone else a living. Giving your money away without the saving grace of having it be for charity or giving it to someone you know needs it more than you do.
Buy=equity.
'Nuff said?