OK, Chuck, I apologize. The *interest* paid each month is in fact 20% more
when the rate jumps from 5% to 6%. We are both right, as you say...since
the *total payment* jumps just under 12%.

Joe, on the other hand, doesn't seem to have a clue. He concluded we were
*both* wrong...when in fact we were *both* right. Does that make him twice
as wrong? ;-)




"Gould 0738" wrote in message
...
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.

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.

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. :-)