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Path: utzoo!linus!gatech!gitpyr!partha
From: partha@gitpyr.UUCP (Partha Dasgupta)
Newsgroups: net.consumers
Subject: Re: Semi-monthly mortgage repayments
Message-ID: <1029@gitpyr.UUCP>
Date: Thu, 14-Nov-85 22:06:59 EST
Article-I.D.: gitpyr.1029
Posted: Thu Nov 14 22:06:59 1985
Date-Received: Fri, 15-Nov-85 20:26:07 EST
References: <10961@ucbvax.BERKELEY.EDU> <4555@alice.UUCP>
Organization: Georgia Institute of Technology, Atlanta
Lines: 26
Summary: Not True!!

In article <4555@alice.UUCP>, ark@alice.UucP (Andrew Koenig) writes:

> >>The incredible part of this is that you manage to reduce your interest
> >>[...]  and you pay off what would
> >>have been a 30 year mortgage in something like 12 years.

> >Could someone post a formula either verifying '12 years' or giving the
> >correct period of time based on the above pay off arrangement?
> 
> If you pay twice a month instead of once, and your payments are
> half what they would be otherwise, you pay off the loan in half
> the time (believe it or not)!  So the number above should have
> been 15 years, not 12.

No Way! By your logic, if I made 4 payments a month, at one-fourth the monthly 
rate, I would pay off the mortgage in 7.5 years.

If you beleive that, I would love to borrow $100,000 from you, at those terms,
any time!

Partha

-- 
Partha Dasgupta
Georgia Insitute of Technology, Atlanta Georgia, 30332
...!{akgua,allegra,amd,hplabs,ihnp4,masscomp,ut-ngp}!gatech!gitpyr!partha