One big reason the U.S. housing market is broken: Owners don’t want to give up their cushy old loans.
  • joenforcer@midwest.social
    42·
    1 year ago

    $100k house

    Oh, you sweet summer child…

    Also, please come back when you understand opportunity cost. I will GLADLY pay anyone a 3% rate to front any amount of money I already have.

        • AlDenteEnglish
          21·
          1 year ago

          Payment = rate*(loan amount)/(1-(1+rate)^(-number of payments))

          Rate =.03/12 = 0.0025

          Payment = 0.0025*100000/(1-1.0025^(-360)) Payment = $421.60

          Therefore, $151776 will be paid in total, or $51776 in interest.