Assumption:
You seek a loan for $250,000 (because you have a $50,000 down payment).
The APR is 4% (a little higher than the current, national average).
Loan term: 30 years (can you even get those anymore?).
Property tax: 1.25%.
PMI: .5%.
Total of 360 Payments:
$542,173.77
So, you pay over $500,000 for a $300,000 house. Seems legit, right?
I don’t really have a point in all of this… I simply enjoy being an antagonist sometimes. That and I find it quite peculiar how accepting humans are of tradition.
“That’s just the way things are done.”
Whatever. Tell that to all of the mainstream financial types that scoffed at Bitcoin. Now take a look at some of the heavy hitters that are investing in the alternative currency (NYSE, anyone?).
Here is a mortgage calculator for you to play with courtesy of Bankrate. Maybe your math is better than mine and you come up with a scenario that makes sense.
On the other hand, here is an article by James Altucher and why he feels entrepreneurs shouldn’t buy homes.
[Photo Credit: Sun Sentinel]
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