$100,000 mortgage at 5% for 30 years is $536.83 per month.

$100,000 mortgage at 6% for 30 years is $599.55 per month.

The mortgage payment at 6% is 11.683% more than the payment at 5%.

How am I wrong?





"Joe Parsons" wrote in message
...
On Sat, 06 Sep 2003 19:34:53 GMT, "NOYB" wrote:


"Gould 0738" wrote in message
...

Remember that when 5% mortgages go to 6%, the interest rate has gone up
only 1%
but the cost of money has increased by a factor of 20%....(6 being a
number
120% as large as 5).

Just when it seems that you do indeed *have* a brain, you post something
like this. If a mortgage rate goes up from 5% to 6%, the monthly payment
on
a 30 year mortgage goes up by a little under 12%...not 20%.

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

Joe Parsons


For a 15 year mortgage, the change is just a little bit under 7%.