Confused with the current market

[an]

So, am I wrong w/ my $ based on your rules and assumptions? I didn’t change the rule, I admitted I missed one variable. But you seem to be happy w/out that variable.

BTW, I actually miss calculated the interest paid over 27 years for the $500k case. The total cost should be $776954.45.

[sdcellar]

Wow, that’s hard to say because I don’t know what question you’re asking. You’re the one who introduced all of initial variables and then you added some more. And even your one variable is two variables, right? That is, rent per month and a number of months.

You might suggest that it’s a single number (i.e. $90K), but look back and you’ll see that when you blew off somebody elses attempt to add a variable (lower rate re-fi), you had the wait at 2 years. I suspect you changed it to 3 to help your cause. I added the notion of 30 year payoff and that’s it.

So, with one exception, let’s have you set (or simply restate) the rules and we’ll run the numbers. The exception is that the total 30 year payment total for both deals have to equal each other. This criteria was not met with your initial figures ([email protected]%, [email protected]%), the latter actually costing an additional $25,729.50 over the course of 30 years.

Also, no need to debate yet, this is just a math problem, so give me the numbers and we’ll run the math. After we’ve done that, we can poke holes, add variables and maybe even learn something.

[sdcellar]

Wow, that’s hard to say because I don’t know what question you’re asking. You’re the one who introduced all of initial variables and then you added some more. And even your one variable is two variables, right? That is, rent per month and a number of months.

You might suggest that it’s a single number (i.e. $90K), but look back and you’ll see that when you blew off somebody elses attempt to add a variable (lower rate re-fi), you had the wait at 2 years. I suspect you changed it to 3 to help your cause. I added the notion of 30 year payoff and that’s it.

So, with one exception, let’s have you set (or simply restate) the rules and we’ll run the numbers. The exception is that the total 30 year payment total for both deals have to equal each other. This criteria was not met with your initial figures ([email protected]%, [email protected]%), the latter actually costing an additional $25,729.50 over the course of 30 years.

Also, no need to debate yet, this is just a math problem, so give me the numbers and we’ll run the math. After we’ve done that, we can poke holes, add variables and maybe even learn something.

[sdcellar]

Wow, that’s hard to say because I don’t know what question you’re asking. You’re the one who introduced all of initial variables and then you added some more. And even your one variable is two variables, right? That is, rent per month and a number of months.

You might suggest that it’s a single number (i.e. $90K), but look back and you’ll see that when you blew off somebody elses attempt to add a variable (lower rate re-fi), you had the wait at 2 years. I suspect you changed it to 3 to help your cause. I added the notion of 30 year payoff and that’s it.

So, with one exception, let’s have you set (or simply restate) the rules and we’ll run the numbers. The exception is that the total 30 year payment total for both deals have to equal each other. This criteria was not met with your initial figures ([email protected]%, [email protected]%), the latter actually costing an additional $25,729.50 over the course of 30 years.

Also, no need to debate yet, this is just a math problem, so give me the numbers and we’ll run the math. After we’ve done that, we can poke holes, add variables and maybe even learn something.

[sdcellar]

Wow, that’s hard to say because I don’t know what question you’re asking. You’re the one who introduced all of initial variables and then you added some more. And even your one variable is two variables, right? That is, rent per month and a number of months.

You might suggest that it’s a single number (i.e. $90K), but look back and you’ll see that when you blew off somebody elses attempt to add a variable (lower rate re-fi), you had the wait at 2 years. I suspect you changed it to 3 to help your cause. I added the notion of 30 year payoff and that’s it.

So, with one exception, let’s have you set (or simply restate) the rules and we’ll run the numbers. The exception is that the total 30 year payment total for both deals have to equal each other. This criteria was not met with your initial figures ([email protected]%, [email protected]%), the latter actually costing an additional $25,729.50 over the course of 30 years.

Also, no need to debate yet, this is just a math problem, so give me the numbers and we’ll run the math. After we’ve done that, we can poke holes, add variables and maybe even learn something.

[sdcellar]

Wow, that’s hard to say because I don’t know what question you’re asking. You’re the one who introduced all of initial variables and then you added some more. And even your one variable is two variables, right? That is, rent per month and a number of months.

You might suggest that it’s a single number (i.e. $90K), but look back and you’ll see that when you blew off somebody elses attempt to add a variable (lower rate re-fi), you had the wait at 2 years. I suspect you changed it to 3 to help your cause. I added the notion of 30 year payoff and that’s it.

So, with one exception, let’s have you set (or simply restate) the rules and we’ll run the numbers. The exception is that the total 30 year payment total for both deals have to equal each other. This criteria was not met with your initial figures ([email protected]%, [email protected]%), the latter actually costing an additional $25,729.50 over the course of 30 years.

Also, no need to debate yet, this is just a math problem, so give me the numbers and we’ll run the math. After we’ve done that, we can poke holes, add variables and maybe even learn something.

[an]

Good, finally we’re getting somewhere. Lets just keep it to purely math. Show your work/assumption. I’ve showed my math. Lets see yours. Where did I miscalculate? No need to debate about anything since we’ve been down this road many times.

As I’ve said in my previous post, the numbers were based on my assumptions. It can vary GREATLY if your assumptions are different than mine. If you want to assume 2 years, sure, do the math. If you want to assume 1 year, I’m fine w/ that too. Show me the numbers and your assumptions. Then we can seem under what scenario will make one decision cheaper than the other. Since there are many variables, we’ll have many different answers. Math do not lie, if you show your work and state your assumptions.

[an]

Good, finally we’re getting somewhere. Lets just keep it to purely math. Show your work/assumption. I’ve showed my math. Lets see yours. Where did I miscalculate? No need to debate about anything since we’ve been down this road many times.

As I’ve said in my previous post, the numbers were based on my assumptions. It can vary GREATLY if your assumptions are different than mine. If you want to assume 2 years, sure, do the math. If you want to assume 1 year, I’m fine w/ that too. Show me the numbers and your assumptions. Then we can seem under what scenario will make one decision cheaper than the other. Since there are many variables, we’ll have many different answers. Math do not lie, if you show your work and state your assumptions.

[an]

Good, finally we’re getting somewhere. Lets just keep it to purely math. Show your work/assumption. I’ve showed my math. Lets see yours. Where did I miscalculate? No need to debate about anything since we’ve been down this road many times.

As I’ve said in my previous post, the numbers were based on my assumptions. It can vary GREATLY if your assumptions are different than mine. If you want to assume 2 years, sure, do the math. If you want to assume 1 year, I’m fine w/ that too. Show me the numbers and your assumptions. Then we can seem under what scenario will make one decision cheaper than the other. Since there are many variables, we’ll have many different answers. Math do not lie, if you show your work and state your assumptions.

[an]

Good, finally we’re getting somewhere. Lets just keep it to purely math. Show your work/assumption. I’ve showed my math. Lets see yours. Where did I miscalculate? No need to debate about anything since we’ve been down this road many times.

As I’ve said in my previous post, the numbers were based on my assumptions. It can vary GREATLY if your assumptions are different than mine. If you want to assume 2 years, sure, do the math. If you want to assume 1 year, I’m fine w/ that too. Show me the numbers and your assumptions. Then we can seem under what scenario will make one decision cheaper than the other. Since there are many variables, we’ll have many different answers. Math do not lie, if you show your work and state your assumptions.

[an]

Good, finally we’re getting somewhere. Lets just keep it to purely math. Show your work/assumption. I’ve showed my math. Lets see yours. Where did I miscalculate? No need to debate about anything since we’ve been down this road many times.

As I’ve said in my previous post, the numbers were based on my assumptions. It can vary GREATLY if your assumptions are different than mine. If you want to assume 2 years, sure, do the math. If you want to assume 1 year, I’m fine w/ that too. Show me the numbers and your assumptions. Then we can seem under what scenario will make one decision cheaper than the other. Since there are many variables, we’ll have many different answers. Math do not lie, if you show your work and state your assumptions.

[sdcellar]

Okay, I asked you for your basis because it’s not clear to me, but based on what you’ve said, this is my best guess. So, with your numbers not mine (and the one change to start “level”).

Prices: 600,000 vs. 500,000
Interest rates: 5.5% vs 7.238%
Down payment: 20%
Rent two years at $2,500/mo
Tax break: 28%

So for the lower price/higher rate, here’s what costs/saves:

+$60,000 (rent)
-$20,000 (down payment)
-$22,406 (interest deduction)
-$31,752 (property tax)

Buying at the lower price saves $14,158.

[sdcellar]

Okay, I asked you for your basis because it’s not clear to me, but based on what you’ve said, this is my best guess. So, with your numbers not mine (and the one change to start “level”).

Prices: 600,000 vs. 500,000
Interest rates: 5.5% vs 7.238%
Down payment: 20%
Rent two years at $2,500/mo
Tax break: 28%

So for the lower price/higher rate, here’s what costs/saves:

+$60,000 (rent)
-$20,000 (down payment)
-$22,406 (interest deduction)
-$31,752 (property tax)

Buying at the lower price saves $14,158.

[sdcellar]

Okay, I asked you for your basis because it’s not clear to me, but based on what you’ve said, this is my best guess. So, with your numbers not mine (and the one change to start “level”).

Prices: 600,000 vs. 500,000
Interest rates: 5.5% vs 7.238%
Down payment: 20%
Rent two years at $2,500/mo
Tax break: 28%

So for the lower price/higher rate, here’s what costs/saves:

+$60,000 (rent)
-$20,000 (down payment)
-$22,406 (interest deduction)
-$31,752 (property tax)

Buying at the lower price saves $14,158.

[sdcellar]

Okay, I asked you for your basis because it’s not clear to me, but based on what you’ve said, this is my best guess. So, with your numbers not mine (and the one change to start “level”).

Prices: 600,000 vs. 500,000
Interest rates: 5.5% vs 7.238%
Down payment: 20%
Rent two years at $2,500/mo
Tax break: 28%

So for the lower price/higher rate, here’s what costs/saves:

+$60,000 (rent)
-$20,000 (down payment)
-$22,406 (interest deduction)
-$31,752 (property tax)

Buying at the lower price saves $14,158.

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