Comments | plural: Ever wonder where your money goes?

plural

Ever wonder where your money goes?

Apr 24, 2009 19:56

I'm the first to admit that most of what I post here
while entertaining, amusing and perhaps even insightful
isn't really all the important to your daily lives

but, ernunnos posted this video and you really need to watch it ( Read more... )

Leave a comment

Back to all threads

plural April 27 2009, 15:57:36 UTC

No need to be ashamed, I am jewish after all, the laws of compound interest are encoded into our DNA *grin*

Yup I'm sure.

I remember it quite well because it was such a huge difference both in terms of time and money not paid in interest.

It was one of those "Holy shit, really" moments.

Of course, if your company adjusts your payment down, then you would have to keep making 13 of your previous payment amounts to adhere to the 17 year schedule. Making 13 of your new payment amount will reduce the overall cost but each time they adjust it will reduce the amount you save.

You can find a nice javascript calculator that will let you play with numerous options for accelerated loan repayment here. I remodelled the original terms when I ran the question before and all in all, it cut 13 years and 120 grand from the schedule term of the loan in exchange (in my case) for an additional $250 per month.

Obviously your interest rate and loan amount will (I had a high interest rate and a low loan amount which increased my benefit significantly) adjust this somewhat. I ran for comparison a 30 year loan at 6.5% for $375,000 with an additional monthly principal payment of $150, and it shaved almost 5 years and over 88 grand off the term of the loan.

Pretty tasty stuff any way you slice it.

budhaboy April 27 2009, 16:52:26 UTC

the other problem with previous analyses was not taking into acount the decreased principle at the refi... In my case dropping from a 5.25% to 4.75% rate whacks almost 30 months off the schedule for just shy of 53K savings...

Nicely done, bubba... nicely done.

plural April 27 2009, 17:30:46 UTC

Glad I could help, you can send my 10% commission check to the usual address ;p

plural April 27 2009, 21:14:48 UTC

Oh btw.

Whats your life looking like the latter half of May?

I'm thinking I might take a road trip out your way, spend a week or so visiting and pick up the boxes I have in your basement?

budhaboy April 27 2009, 22:05:32 UTC

As of now, it's pretty clear... we're off to NC starting 6/12 though.

plural April 28 2009, 04:46:24 UTC

I'm thinking something like May 23rd through 29th +/- 2 days on either end as I haven't decided if I'm going to fly out or do a road trip.

budhaboy April 28 2009, 12:16:13 UTC

Sounds like a plan, brother...

Those boxes are mostly exactly where you left them... I've moved a couple around and noticed that they are starting to get a little aged. It has been like three years, no?

plural April 28 2009, 23:51:45 UTC

/facedesk

yup three years in august

I may have to repack them.

sounds good then, I'll update you as I get things fixed into place.

Back to all threads