Re: The Cost of Interest on Loans
[Re: Mike C]
#8105800
03/22/24 01:34 PM
03/22/24 01:34 PM
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Joined: Feb 2016
Posts: 3,871 Kentucky
ky_coyote_hunter
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Yes, amortization is real...It takes so long to to pay down the interest, before you even start appreciably knocking out the principle, on a extended loan!
Member - FTA
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Re: The Cost of Interest on Loans
[Re: Mike C]
#8105815
03/22/24 02:00 PM
03/22/24 02:00 PM
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Joined: Feb 2007
Posts: 5,829 New York border
Cragar
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What is really a concern other than the high rates are 5,6 ,7 and 8 year loans for automotive loans to get the monthly payments down. Really , really adds up.
NRA benefactor member
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Re: The Cost of Interest on Loans
[Re: Cragar]
#8105822
03/22/24 02:10 PM
03/22/24 02:10 PM
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Joined: Mar 2023
Posts: 2,243 WI
WI Outdoors
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What is really a concern other than the high rates are 5,6 ,7 and 8 year loans for automotive loans to get the monthly payments down. Really , really adds up. People buying things they can't afford is the concern.
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Re: The Cost of Interest on Loans
[Re: Mike C]
#8105829
03/22/24 02:32 PM
03/22/24 02:32 PM
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Joined: Nov 2014
Posts: 2,046 east central WI
Dirty D
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car and home loans at 30-40 year highs,
this is not true, home loans for the last 50 years have a median rate of over 7%. They are higher than the last 10-12 years or so but in that period they were abnormally low. People got used to the low rates in the last decade and now with rates at a more normal place they forget that.
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Re: The Cost of Interest on Loans
[Re: WI Outdoors]
#8105856
03/22/24 03:25 PM
03/22/24 03:25 PM
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Joined: Dec 2022
Posts: 4,903 illinois
jalstat
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What is really a concern other than the high rates are 5,6 ,7 and 8 year loans for automotive loans to get the monthly payments down. Really , really adds up. People buying things they can't afford is the concern. Spot on
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Re: The Cost of Interest on Loans
[Re: charles]
#8105921
03/22/24 05:10 PM
03/22/24 05:10 PM
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Joined: Feb 2020
Posts: 10,325 Indiana
Providence Farm
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I have a 10-year mortgage at 1.875%. I pay about $500 extra per month because I don’t like debt at my age. I know it would be smarter to invest the extra payment amount, but I don’t want to leave this world with an unpaid debt. I have a small loaner on my wifes van but it's 1.8% so I'm not paying it off early. I am making more not paying it off early. I can build a building with the cash and not have a lone at 8%. Or keep it in cds @5%. If I leave the world before it's paid off insurance for that I put on the loan will pay it off.
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Re: The Cost of Interest on Loans
[Re: Mike C]
#8105995
03/22/24 07:09 PM
03/22/24 07:09 PM
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Joined: Dec 2006
Posts: 6,038 Williamsport, Pa.
jk
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Bought my house mid 80's the cost of a fixed mortgage was 15% for 20 years. House was $30,000. Paid it off in 7 years at that rate......jk
Free people are not equal. Equal people are not free. What's supposed to be ain't always is. Hopper Hunter
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Re: The Cost of Interest on Loans
[Re: white17]
#8105998
03/22/24 07:18 PM
03/22/24 07:18 PM
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Joined: Nov 2012
Posts: 1,345 midland, michigan
midlander
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But if your cash flow will allow you to do it.....you can also make additional payments to "principal only".
You just need to mark them as such and make sure your lender understands what you're intentions are Exactly what I did...the world is a lot brighter without house payments...
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Re: The Cost of Interest on Loans
[Re: uplandpointer]
#8106011
03/22/24 07:30 PM
03/22/24 07:30 PM
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Joined: May 2011
Posts: 17,653 Oakland, MS
yotetrapper30
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I use a card for most purchases and pay it off every month. Most months it is 2 or 3k. By chance I was looking over my statements the other day. It said if I were to make a minimum payment of about $125 it would take 17 years to pay it off. That's hard to wrap my head around. What's hard to wrap your head around is the number of people that actually do that.
Just give me one thing, that I can hold on to. To believe in this livin' is just a hard way to go.
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Re: The Cost of Interest on Loans
[Re: Mike C]
#8106016
03/22/24 07:35 PM
03/22/24 07:35 PM
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Joined: Nov 2008
Posts: 1,871 Michigan
Michigander
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It goes both ways. You also have to consider the cost of keeping that cash tied up in an item. Maybe your better off having the item and a payment and using the cash in a way that gains more than the interest rate.
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Re: The Cost of Interest on Loans
[Re: Michigander]
#8106032
03/22/24 07:53 PM
03/22/24 07:53 PM
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Joined: Nov 2012
Posts: 1,345 midland, michigan
midlander
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It goes both ways. You also have to consider the cost of keeping that cash tied up in an item. Maybe your better off having the item and a payment and using the cash in a way that gains more than the interest rate. Thats what a lot of folks said just prior to the last crash/covid. Then, there were a whole lot of folks with reduced income or none at all that were thinking a paid off house isnt so bad after all. People often forget to factor risk into their 'numbers' game. Pay your house off and then use your income to build wealth fast...much less risk. Ive never seen a foreclosure on a paid off mortgage. Ive never heard anyone say, "Boy, i wish I hadnt paid my house off." Maybe a few out there..?...but never met one. Your money, your decision and I respect that....
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Re: The Cost of Interest on Loans
[Re: midlander]
#8106070
03/22/24 09:06 PM
03/22/24 09:06 PM
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Joined: Nov 2008
Posts: 1,871 Michigan
Michigander
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It goes both ways. You also have to consider the cost of keeping that cash tied up in an item. Maybe your better off having the item and a payment and using the cash in a way that gains more than the interest rate. Thats what a lot of folks said just prior to the last crash/covid. Then, there were a whole lot of folks with reduced income or none at all that were thinking a paid off house isnt so bad after all. People often forget to factor risk into their 'numbers' game. Pay your house off and then use your income to build wealth fast...much less risk. Ive never seen a foreclosure on a paid off mortgage. Ive never heard anyone say, "Boy, i wish I hadnt paid my house off." Maybe a few out there..?...but never met one. Your money, your decision and I respect that.... You won't find another person who hates debt more than me. Never had any and don't desire any. But it is good to realize that not using debt has a cost.
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