Finance Questions

Archive for March, 2007

Question: I need a smart math person please!?

A condo is listed at 135,000. I have placed an 8% down payment and I am planning on a 30 year mortgage at 6.355 APR, but i can pay more than what the bank is requiring each month. My friend said that if I pay off my home in 20 year mortgage that it will save me about 40% interest. How did she come up with that percent? Does a 20 year mortgage always save you about 40% interest?

Answer: I'm at a loss to answer your question using the TI-83, since I use a TI-89.
But, here's a good website to show you the steps on the TI-83/84 calculator:

http://www.ehow.com/how_4824823_time-value-of-money-ti.html

You'll see 8 fields in which to enter data:
N - stands for the number of time periods (12 months * 30 years = 360)
I% - stands for the interest rate (6.355)
PV - stands for present value (135,000 - 10,8000 = 124,200)
PMT - stands for additional payments made or required over time
FV - stands for future value (Enter zero here)
P/Y - stands for number of payments per year (12)
C/Y - stands for number of compounding periods per year (12)
PMT END / BEGIN - (Plug in END here)
stands for whether the payments are at the beginning or end of the period.

http://www.mortgage-calc.com/mortgage/simple_results.php

According to this website and my calculator, your payment will be $773.22/mo.
If you pay it off in 20 years, the monthly payment is $915.43.

So, let's compare the two:
30 years * 12 payments * $773.22 = $278,359.92
20 years * 12 payments * $915.43 = $219,703.20
Difference = $58,656.72

So, is your friend correct? - Let's see...
$58,656.72 / ($277,776.00 - $124,200) = .381939 ≈ 38.1% savings
Your friend is pretty close... I learned something today!

Caveat: Be sure to include insurance and taxes in your monthly payment!

Hope I was able to help you Amber,
~ Mitch ~

Minorities faced greater harm in mortgage scandals

Question: does anyone know where a 65 year old man can get a job in southeast houstn,texas?

worked in finance at auto dealerships for over 40 years

Answer: Lots of luck,people of all ages are trying to find a job.
You can put in applications at all car dealers and hope they call you.

Real Estate Finance Job