FHA:
20% decline over 8 years:
$158,101.62 (8 years of interest) – $0(equity) + 14k (down payment) = $172101.62 (total cost of living in it for 8 years)
BUT REALLY IT IS COSTING 172-66K = DOWN 106k BECAUSE YOU GOT TO KEEP YOUR 66K
flat over 8 years:
$158,101.62 (8 years of interest) – $60723.87(equity) – 14k (down payment) = $83377.75 (total cost of living in it for 8 years)
AGAIN, REALLY IT IS COSTING 83K-66K = DOWN 17K
20% increase over 8 years:
$158,101.62 (8 years of interest) – $140723.87(equity) – 14k (down payment) = $3377.75 (total cost of living in it for 8 years)
REALLY YOU ARE “UP” (SORT OF) 69K SINCE WE ARE COUNTING THE ORIGINAL MONIES IN BOTH SCENARIOS
UP 69K
Conventional:
20% decline over 8 years:
$113,342.30 (8 years of interest) – $46907.76(equity) + 80k (down payment) = $146434.54 (total cost of living in it for 8 years)
IS THE 80K INCLUDED IN THE 46.9 EQUITY
flat over 8 years:
$113,342.30 (8 years of interest) – $126907.76(equity) – 80k (down payment) = -$93565.46 (total cost of living in it for 8 years)
127K – 113K – 80K = down 66k
20% increase over 8 years:
$113,342.30 (8 years of interest) – $206907.76(equity) – 80k (down payment) = -$173565.46 (total cost of living in it for 8 years)
WHAT DO YOU GET AS YOUR BOTTOM LINE FOR UP/DOWN FOR THE 6 DIFFERENT PERMUTATIONS
