What happens when you borrow 161K?
Lets say you borrowed 161,000 15 years ago at 6.75% for 180 months.
You have been paying 1,424.70 every month for 180 months.
Did you know....that after 113 months you had paid back the 161? The next 47 months you were paying the banker's profit....95,466
yeah, so far you are not surprised.
Well imagine a dude followed you around with a truck. Every time you made a payment he would take it and put it into his truck. Lots of payments so he would need a truck. He would invest that money at 4%, He would be running his bank out of the back of his truck as he followed you around for 15 years... .always right on you like a shadow - too busy to help you remodel but vigilant when it came to collecting - just like you.
So how much would the banker have when you made your last payment? We know you would pay him back 161,000 plus the 95,466.......but what about that 4%?
$350,605.12...... $189,605.12 That is how much the banker cleared above the 161K. $1,053.37 per month.
Pretty cool ehh?
I would venture a guess that if your loan was 161K, you put down 20% making the purchase price $201,250.00 Did you rent that home for $ 2,000.00 per month?
If you did, How much were you earning after TIPI ?
*I believe this is why Sid drives home buying with cash. I tried for years to get others involved in buying my existing notes but nobody came on board...now it is too late. I wish someone had listened. I love this math.
Remember I've said it many times. It is not how many homes you own, it is how good your loans are. --96.241.xx.xx