I have no debt on my credit cards or line of credit. I'm single, I have only my mortgage and my car (4 more years and car is paid off, freeing up $450 more a month. It's a 2008 Honda Civic so maintenance past warranty shouldn't be that high).
quote:
nem-x is SUPER gay thought about the meaning of life:
Looking at how much interest I'm gonna pay compared to how much goes on my principal, it's very clear that the 3.8% interest rate I have isn't just 1.038x what I borrowed. I have a $20,000 line of credit with a 6% interest rate, which is just a flat 6% extra of whatever I owe at the end of the month. Would it be wise to put $10000 of my line of credit towards my down payment, and pay both off at the same time? Is it a smart thing to do? Using http://www.mortgagecalculator.org/ I would have paid almost $6000 less interest over the my amortization (minus the interest accumulated from the line of credit of however long it took me to pay it back). I think it looks good on paper, but I'd rather some input on people with experience.I have no debt on my credit cards or line of credit. I'm single, I have only my mortgage and my car (4 more years and car is paid off, freeing up $450 more a month. It's a 2008 Honda Civic so maintenance past warranty shouldn't be that high).
I'm not quite sure what you're trying to communicate here.
Were you unaware that interest compounds? ie Say we have a "nominal" rate of 3.8%
That means that we have 3.8%/12=0.3167% monthly compounding interest. That means you will have to pay that much in interest each month. If you convert that to a "real" interest rate that is (1.003167)^12=3.867%. That is significantly less than 6%(whether that is nominal or real).
Furthermore I'm confused what you mean by an extra 6% at the end of each month. If that is actually correct you are paying a nominal interest rate of 6%*12=72% which is basically usury.
The thing you have to understand is you don't pay 1.038x the initial principal over the LIFE of the mortgage. You are constantly accumulating additional expenses in interest and you pay mostly those in the beginning and gradually pay more in principal. (This is why any additional payments early in a mortgage drastically reduce the length; you don't have to pay interest on all that money for the next 30 some odd years)
Basically I need what your actual mortgage and credit line terms are because you are fairly bad at communicating this information. As a general rule though, it is highly highly highly unlikely that an unsecured personal line of credit will be cheaper than a mortgage.
Let me get this straight: You got a $154,000 mortgage without understanding compound interest?
That's a pretty expensive way to learn about compound interest.
Divide it by 12.
.0031666666 - This is your periodic percentage rate.
Take your balance at the beginning of any month.
$150,000
Multiply it by the periodic percentage rate
$475 - This is the amount of interest you owe that month.
Take your payment.
$700
Subtract the interest you owed that month.
$225 - This is the amount of your payment that went towards your balance.
Take your balance at the beginning of the next month -
$149,775...
Repeat until you've payed off your balance. Blindy fucked around with this message on 05-04-2009 at 12:26 PM.
This is far too big a step in your life to trust to an internet forum and limited personal research. Ask someone you trust who's been there. Someone much older with a keen business sense (who bought homes multiple times themselves).
Most of the people on these forums and this thread simply don't have the life experience to help well - the age demographic is too young.
You'll need to go over the numbers with someone who's good with all this. He/she should also be able to take little things into account you may not have thought of.
Examples: Never get a home inspector that your real estate agent recommends. Get your own lawyer - not one that goes through the bank. There will be additional expenses that you aren't used to. Things will break. Things will need to be maintained. Some can be guessed based on the age of the house. Others are just pure chance. Your taxes will be different. There will be closing costs, lawyers fees, and the like. Some of these fees can be reduced by negotiation, others can't. You'll be working with a lot of people. One of them may be a predator- know what to look out for. If it isn't in writing, it doesn't count.
I'm not trying to overwhelm you or say you shouldn't buy the house. I'm simply giving my answer to the advice you are asking for - find someone more experienced than us to help. Believe me, it will be more than worth the hassle in the long run.
I'm also very skeptical of your APR. Ghost of Forums Past fucked around with this message on 05-09-2009 at 08:51 PM.
quote:
Everyone wondered WTF when Liam wrote:
you're going to be homeless livin in t-dot soon pal
Guess I have to move to newfieland.
Also the APR is 3.8.
Also Blindy gave the best response.
Also I talked to my mortgage broker and she told me I'm dumb for thinking about using my line of credit.
Also Ares when are you moving in?
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nem-x is SUPER gay got a whole lot of nerve:
Guess I have to move to newfieland.Also the APR is 3.8.
Also Blindy gave the best response.
Also I talked to my mortgage broker and she told me I'm dumb for thinking about using my line of credit.
Also Ares when are you moving in?
you cant really afford shit all here either sorry bro
quote:
Ghost of Forums Past stopped staring at Deedlit long enough to write:
I suggest you get someone aside from your mortgage broker to look at the numbers. He doesn't necessarily have your best interest at heart.
would a picture of the piece of paper we both signed that I have be enough for you?
quote:
Check out the big brain on Liam!
you cant really afford shit all here either sorry bro
I thought newfieland would have cheap houses because you'd be living in newfieland.
quote:
nem-x is SUPER gay has funnier quote texts than me:
I thought newfieland would have cheap houses because you'd be living in newfieland.
Newfoundland's awesome so shut your dumb mouth mainlander!!!
quote:
Verily, the chocolate bunny rabbits doth run and play while Liam gently hums:
Newfoundland's awesome so shut your dumb mouth mainlander!!!
Last (and only) time I was there, the snow on the side of the road was piled higher than the schoolbus they used to take us from the airfield to billeting. By a comfy margin.
I think it was Newfoundland...could've been Labrador...one of those dog places, anyway. Is Goose Bay Labrador or Newfoundland?
Oh, and is it Newfoundland or Newfoundland?
--Satan, quoted by John Milton
How was CFB Goose Bay, anyways? I've never been and I hope to never end up there!
quote:
nem-x is SUPER gay stopped beating up furries long enough to write:
would a picture of the piece of paper we both signed that I have be enough for you?
I'm simply suggesting that you get a lawyer who doesn't work for the bank or at least talk to your father (or some other experienced adult who has your best interest at heart and knows what to look out for) about it. Unfortunately, I doubt that said person exists on these forums. Ghost of Forums Past fucked around with this message on 05-13-2009 at 08:18 AM.
quote:
Quoth Liam:
It's actually pronounced New-fin-land, and Goose Bay's in central Labrador, where it's definitely god damn freezing.How was CFB Goose Bay, anyways? I've never been and I hope to never end up there!
That's what I was trying to get at with the second one--good to know the facts, ma'am!
Our airplane diverted into Goose Bay in February after losing an engine and all electrical power, then landing in light snow and blowing all of the tires due to no anti-skid. I think that's about the only reason to go there.
And I certainly don't recommend February! Other than that, I think it's the best military chow hall I've ever been to.
--Satan, quoted by John Milton
quote:
A sleep deprived Bloodsage stammered:
And I certainly don't recommend February! Other than that, I think it's the best military chow hall I've ever been to.
Huh. Better than Pensacola?
Granted, Air Force galleys are probably head and shoulders above Navy.
Even during basic, we ate like kings. Silly frou frou fromage? oui monsieur!
quote:
Bent over the coffee table, Liam squealed:
Not going to lie, most CF bases have pretty great food. Consistently, anyways.Even during basic, we ate like kings. Silly frou frou fromage? oui monsieur!
You may have a point there: when I visited Royal Roads Military College way back in the day, I was also impressed by their chow.
So I guess you Canookians are the best at something, after all!
--Satan, quoted by John Milton
Dry biscuits and boil-in-the-bag 2000 calorie sponge pudding is awesome, I tell ye.
quote:
Mortious was naked while typing this:
People think I'm wierd for really liking British Army ration packs.Dry biscuits and boil-in-the-bag 2000 calorie sponge pudding is awesome, I tell ye.
Same here. The two times I had some army MRE, I really liked them.
