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Old 05-08-2018, 11:41 AM
 
Location: Tijuana Exurbs
3,861 posts, read 10,091,894 times
Reputation: 4276

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Quote:
Originally Posted by hitpausebutton2 View Post
If your sitting on alot of money in the bank or couch, are you the partial reason for inflation?
Hoarding cash causes deflation. In economics parlance it is described as a reduction in the Velocity of Money, and it effectively reduces the money supply which as a consequence causes prices to drop.

Last edited by kettlepot; 05-08-2018 at 11:52 AM..
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Old 05-08-2018, 12:06 PM
 
5,605 posts, read 4,158,119 times
Reputation: 12338
Quote:
Originally Posted by hitpausebutton2 View Post
I assume they put it all in one lump sum total. 100k house + %5 interest= 105k total with interest..

So 15 year payment be around $584 if my math is correct. So what am i missing here? ( insurance and taxes are separated i know)

If we cant freeze price of goods ,( other then state of emergency), producing more can lower it down but besides that.. what else can do to keep wages above col with out increasing the inflation value.
LOL. Your assumption is very wrong. You’re missing that you have to pay interest for the entire 15 year loan period. It’s not just a one time charge. The interest is calculated every month on the current balance of your loan. And every month you pay 100% of the accrued interest plus a principal amount. That’s why early in a mortgage you’re paying mostly interest and later in the loan you’re paying mostly principal. Looking at an amortization table will be helpful for you. But honestly, if your understanding of lending is as poor as your posts indicate, you have a lot of learning to do before even considering buying a house.

Also, the actual P&I (principal and interest) on a 100K 15 year loan at 5% interest is $791 a month. Add in PMI (if you’re putting down less than 20%), insurance and taxes and your mortgage payment is estimated at $1057 a month. So no, your math nowhere near correct.
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Old 05-08-2018, 12:32 PM
 
2,240 posts, read 1,385,700 times
Reputation: 4894
Quote:
Originally Posted by hitpausebutton2 View Post
I assume they put it all in one lump sum total. 100k house + %5 interest= 105k total with interest..

So 15 year payment be around $584 if my math is correct. So what am i missing here? ( insurance and taxes are separated i know)

If we cant freeze price of goods ,( other then state of emergency), producing more can lower it down but besides that.. what else can do to keep wages above col with out increasing the inflation value.
Banks donít use simple interest. They use compounding interest.

Your total interest would be far far higher than $5,000.
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Old 05-08-2018, 12:49 PM
 
5,605 posts, read 4,158,119 times
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Quote:
Originally Posted by Thatsright19 View Post
Banks donít use simple interest. They use compounding interest.

Your total interest would be far far higher than $5,000.
Yes, quite a bit higher. To be exact $42,342.85 over the 15 years.
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Old 05-08-2018, 03:30 PM
 
3,529 posts, read 2,172,235 times
Reputation: 2636
Quote:
Originally Posted by hitpausebutton2 View Post
Might as well give up your hope and dreams because we know that will not happen. They can afford lobbiest to prevent this.
Big business has lost plenty of political fights in the past. Their number 1 ally is voter apathy and defeatism; when voters engage in the political process, business loses.
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Old 05-08-2018, 09:34 PM
 
2,360 posts, read 1,026,502 times
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Quote:
Originally Posted by UNC4Me View Post
Yes, quite a bit higher. To be exact $42,342.85 over the 15 years.
Half way buying another house just in interest fees.

Figure my math was wrong, assuming they was just lump your payments. My condolences. Seems they get you coming and get ya going, and that is so wrong no matter what. So in reality, not sure if 5% is even a good number to have on a house.. they are getting 150% of their money back give or take another %1 for "admin fees". I bring the lube next time i go to the realtor office and talk with them in the future.
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Old 05-08-2018, 09:35 PM
 
2,360 posts, read 1,026,502 times
Reputation: 2071
Quote:
Originally Posted by FrankMiller View Post
Big business has lost plenty of political fights in the past. Their number 1 ally is voter apathy and defeatism; when voters engage in the political process, business loses.

Yes, and that is the other hard part. Getting people to vote and get rid of them.. but we have a political thread for this discussion.
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Old 05-08-2018, 10:42 PM
 
24,714 posts, read 26,785,278 times
Reputation: 22704
That's "hoarding", not "hording".
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Old 05-09-2018, 06:10 AM
 
5,605 posts, read 4,158,119 times
Reputation: 12338
Quote:
Originally Posted by hitpausebutton2 View Post
Half way buying another house just in interest fees.

Figure my math was wrong, assuming they was just lump your payments. My condolences. Seems they get you coming and get ya going, and that is so wrong no matter what. So in reality, not sure if 5% is even a good number to have on a house.. they are getting 150% of their money back give or take another %1 for "admin fees". I bring the lube next time i go to the realtor office and talk with them in the future.
They are not getting 150% back on their money. They are getting 5%. You keep missing the fact that youíre borrowing the money for 15 years and the interest rate of 5% is an ANNUAL Percentage Rate.
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Old 05-09-2018, 09:05 AM
 
Location: Wilmington, NC
1,314 posts, read 226,718 times
Reputation: 2091
Quote:
Originally Posted by mysticaltyger View Post
That's "hoarding", not "hording".
Thank you!
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