Wednesday, May 14, 2008

"Why Do I End Up Paying Twice?"

That's what one of our subscribers asked us today: "During the length of my mortgage, why is it that I end up paying twice what my property is worth?"

To answer that question, I made the amortization table below.

Can you see what 's wrong? (Not with the table itself, but the table shows that something is wrong.)

Month

Balance

Payment

Inerest

Principal

New Balance

1

$ 250,000.00

$1663.00

$1458

$205.00

$249,795.00

60

$235,618.00

$1663.00

$1374

$289.00

$235,329.00

359

$3,298.00

$1663.00

$29.00

$1,635.00

$1,654.00



To find out what's wrong, see this page that I just created this evening. (There's an audio button on it, too. Sorry for the background noise.)

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