Xander ,'Get It Done'
Off-topic discussion. Wanna talk about corsets, duct tape, or physics? This is the place. Detailed discussion of any current-season TV must be whitefonted.
I hate to add to the arguement - but if I remember the (fake)number of the loan my house needs to go up another 230k - if I pay the loan at the way it is set up. over 30 yrs - quite probable.
My parents never lost on a house. even being in the military and being in one house for just over a year.
It is possible to lose in the houseing market. there are bad places to buy and bad times. but if you can sit, it usually pays.
t nibbles Gus' ear, driving silly financial chatter from his pwetty bwain
assuming no money down and a 7% interest rate, a 30-year fixed had them paying ...
All generous assumptions, but not unreasonable. Let us now factor in 1975 dollars against today's dollars. Woops.
I want my 1975 bux back.
t makes out with Trudy in a way that makes money a dim, distant memory
I want my 1975 bux back.
But it's a hypothetical. Even if a house had never been purchased, you still wouldn't have your 1975 dollars back.
Don't forget they were paying down the 1975 value of the house. The amount of their mortgage didn't increase with the cost of living, so their $200/month payment--which in 2005 terms would equal $713--is still far less than it would cost to rent a house of comparable size.
If they had saved that $200/month, starting in 1975, they would have $98,500 today (assuming a standard savings account at 2% interest). Less than the $108K they've made on the house.
and of course they couldn't have saved that 200.... or not all of it because you have to live somewhere...
beth, i do so love your spicy brains!
OK, I'm going 2400 x 30 and making 720 K in 1975 bux. Let us give a slope to the numbers behind inflation that comes out and $135 K.
Wait, I'll stop there. Maybe you don't like my numbers.
Gus, I don't understand your numbers. Where's the 2400 coming from?
edit: 2400 times 30 equals 72K, not 720K.
edited again: Just so you know where I'm getting my conversion figures from. The CPI has $1 in 1975 equal to $3.57 today. If they had 72K in 1975, it's equal to having ~$257K in 2005. But they wouldn't, because the rate of return on a standard savings account wasn't great enough. And you've got that slope of inflation to account for.
Gawd. 12 x 200 x 32 = 72K
Yes.
I am down with this. I sloped the numbers as I went along.
Pick a number above 72, Maria of my heart. I shall use it to do battle.