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On 07 Sep 2003 01:39:32 GMT, (Gould 0738) wrote:

Actually, you're *both* wrong--although you are closer with respect to the 15
year mortgage.

Joe Parsons

Actually we're both right, that is if NOYB check his amortization chart before
typing away. We are speaking about two completely different concepts, however.

I didn't ever say the monthly payment went up 20%, just that 6% money is 120%
the cost of 5% money. Math was never my strongest subject, but I would invite
anybody to show me where 5 X 1.2 doesn't equal 6.

Amortization is derived by a fairly complex equation. While it is true that 6%
is 120% of 5%, the cost of the money--and thus the loan--can't be viewed quite
so simply.

NOYB said I lacked a brain because the monthly payment doesn't go up 20% at the
higher rate. No, it doesn't. Part of the money paid back each month reduces the
principal balance.

Now we're back to my objections about the "political" threads in a newsgroup
that is nominally not about politics: there tends to be more than a little
polarization and ill-will generated as a result of the "discussions." The
ill-will is unnecessary, I believe.

Joe Parsons

I thought the guys on the right were supposed to be such financial geniuses!
I guess the tax cuts should have been the first clue. :-)