Well, I'm seriously considering buying a home. A 2 bed/1bath condo at the least. My fiance and I are very sick of not having a stable place to live.
Hoping to keep the price around $200K.
OK, get ready to laugh.
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.
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I live in Los Angeles.
The whole mortage calculation thing is confusing as hell.
I ran a very very very optimistic calculation on an online mortgage calculator:
Principal= $200,000
Interest Rate= 5.00%
Amortization Period= 30 years
Starting month= Aug
Starting year= 2004
Monthly Pre-payment= $0
Annual Pre-payment= $ 0.00
TOTAL MONTHLY PAYMENT: $ 1073.64
Wow, it's been awhile since I had an economics class, but What? I'm going to be
Basic Naive Math:
$200,000 Loan
5% of $200,000 = $10,000
$210,000 divided by 360 months (30years) = $583.33
Total Monthly = $583.33
Bank Bend You Over Math:
$200,000 Loan
5% of $200,000 = $assloads of$$$compounded over 30years
Average monthly interest = $360.11
Total Monthly = $1073.64
Wow. Compounding interest is fun stuff eh?
Ouch.
I haven't even factored in property tax, insurance, possible maintainance (will DIY as much as I can), home owners assoc. bills, and various other utility bills.
Yikes.
My head it hurts......
Any advice?
Other than selling all my stuff to you guys, you vultures.
-Ed
Hoping to keep the price around $200K.
OK, get ready to laugh.
.
.
.
.
.
I live in Los Angeles.
The whole mortage calculation thing is confusing as hell.
I ran a very very very optimistic calculation on an online mortgage calculator:
Principal= $200,000
Interest Rate= 5.00%
Amortization Period= 30 years
Starting month= Aug
Starting year= 2004
Monthly Pre-payment= $0
Annual Pre-payment= $ 0.00
TOTAL MONTHLY PAYMENT: $ 1073.64
Wow, it's been awhile since I had an economics class, but What? I'm going to be
Basic Naive Math:
$200,000 Loan
5% of $200,000 = $10,000
$210,000 divided by 360 months (30years) = $583.33
Total Monthly = $583.33
Bank Bend You Over Math:
$200,000 Loan
5% of $200,000 = $assloads of$$$compounded over 30years
Average monthly interest = $360.11
Total Monthly = $1073.64
Wow. Compounding interest is fun stuff eh?
Ouch.
I haven't even factored in property tax, insurance, possible maintainance (will DIY as much as I can), home owners assoc. bills, and various other utility bills.
Yikes.
My head it hurts......
Any advice?
Other than selling all my stuff to you guys, you vultures.
-Ed