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scaredyclassic.
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December 2, 2009 at 12:19 PM #490254December 2, 2009 at 12:21 PM #489396
scaredyclassic
Participantdidn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?
December 2, 2009 at 12:21 PM #489562Participantdidn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?
December 2, 2009 at 12:21 PM #489945Participantdidn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?
December 2, 2009 at 12:21 PM #490033Participantdidn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?
December 2, 2009 at 12:21 PM #490264Participantdidn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?
December 2, 2009 at 12:41 PM #489401an
ParticipantFHA:
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
Yes, you’re correct here.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
No, The $46.9k is not part of the $80k. Since you subtract $66k in the FHA equation, you have to subtract $62k over here too for the monthly payment saving. $146434.54 – $62k = ~$84kflat 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
127K(This one already contains $80k down) – 113K + 62K = up $76k20% 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)
This actually should be:
$206k – $113k + $62k = up $155kWHAT DO YOU GET AS YOUR BOTTOM LINE FOR UP/DOWN FOR THE 6 DIFFERENT PERMUTATIONS
To summarize:
20% down:
106k – 84k = ~$22k cheaper to go w/ conventional.
$76k + $17k = ~93k cheaper to go w/ conventional.
$155k – $69k = ~$86k cheaper to go w/ conventional.I did not include the opportunity cost of the $66k or the $62k. I also didn’t add in the tax consequence of the income that would have been made from the $66k and $62k.
[quote=scaredycat]didn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?[/quote]
Doing the actual calculation is easy. The hard part is figuring out which variables you want to include into your calculation and how robust you want your calculation to be. Also, hopefully with me fixing my errors, it should be a little clearer now.December 2, 2009 at 12:41 PM #489567ParticipantFHA:
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
Yes, you’re correct here.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
No, The $46.9k is not part of the $80k. Since you subtract $66k in the FHA equation, you have to subtract $62k over here too for the monthly payment saving. $146434.54 – $62k = ~$84kflat 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
127K(This one already contains $80k down) – 113K + 62K = up $76k20% 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)
This actually should be:
$206k – $113k + $62k = up $155kWHAT DO YOU GET AS YOUR BOTTOM LINE FOR UP/DOWN FOR THE 6 DIFFERENT PERMUTATIONS
To summarize:
20% down:
106k – 84k = ~$22k cheaper to go w/ conventional.
$76k + $17k = ~93k cheaper to go w/ conventional.
$155k – $69k = ~$86k cheaper to go w/ conventional.I did not include the opportunity cost of the $66k or the $62k. I also didn’t add in the tax consequence of the income that would have been made from the $66k and $62k.
[quote=scaredycat]didn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?[/quote]
Doing the actual calculation is easy. The hard part is figuring out which variables you want to include into your calculation and how robust you want your calculation to be. Also, hopefully with me fixing my errors, it should be a little clearer now.December 2, 2009 at 12:41 PM #489950ParticipantFHA:
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
Yes, you’re correct here.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
No, The $46.9k is not part of the $80k. Since you subtract $66k in the FHA equation, you have to subtract $62k over here too for the monthly payment saving. $146434.54 – $62k = ~$84kflat 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
127K(This one already contains $80k down) – 113K + 62K = up $76k20% 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)
This actually should be:
$206k – $113k + $62k = up $155kWHAT DO YOU GET AS YOUR BOTTOM LINE FOR UP/DOWN FOR THE 6 DIFFERENT PERMUTATIONS
To summarize:
20% down:
106k – 84k = ~$22k cheaper to go w/ conventional.
$76k + $17k = ~93k cheaper to go w/ conventional.
$155k – $69k = ~$86k cheaper to go w/ conventional.I did not include the opportunity cost of the $66k or the $62k. I also didn’t add in the tax consequence of the income that would have been made from the $66k and $62k.
[quote=scaredycat]didn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?[/quote]
Doing the actual calculation is easy. The hard part is figuring out which variables you want to include into your calculation and how robust you want your calculation to be. Also, hopefully with me fixing my errors, it should be a little clearer now.December 2, 2009 at 12:41 PM #490038ParticipantFHA:
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
Yes, you’re correct here.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
No, The $46.9k is not part of the $80k. Since you subtract $66k in the FHA equation, you have to subtract $62k over here too for the monthly payment saving. $146434.54 – $62k = ~$84kflat 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
127K(This one already contains $80k down) – 113K + 62K = up $76k20% 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)
This actually should be:
$206k – $113k + $62k = up $155kWHAT DO YOU GET AS YOUR BOTTOM LINE FOR UP/DOWN FOR THE 6 DIFFERENT PERMUTATIONS
To summarize:
20% down:
106k – 84k = ~$22k cheaper to go w/ conventional.
$76k + $17k = ~93k cheaper to go w/ conventional.
$155k – $69k = ~$86k cheaper to go w/ conventional.I did not include the opportunity cost of the $66k or the $62k. I also didn’t add in the tax consequence of the income that would have been made from the $66k and $62k.
[quote=scaredycat]didn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?[/quote]
Doing the actual calculation is easy. The hard part is figuring out which variables you want to include into your calculation and how robust you want your calculation to be. Also, hopefully with me fixing my errors, it should be a little clearer now.December 2, 2009 at 12:41 PM #490269ParticipantFHA:
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
Yes, you’re correct here.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
No, The $46.9k is not part of the $80k. Since you subtract $66k in the FHA equation, you have to subtract $62k over here too for the monthly payment saving. $146434.54 – $62k = ~$84kflat 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
127K(This one already contains $80k down) – 113K + 62K = up $76k20% 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)
This actually should be:
$206k – $113k + $62k = up $155kWHAT DO YOU GET AS YOUR BOTTOM LINE FOR UP/DOWN FOR THE 6 DIFFERENT PERMUTATIONS
To summarize:
20% down:
106k – 84k = ~$22k cheaper to go w/ conventional.
$76k + $17k = ~93k cheaper to go w/ conventional.
$155k – $69k = ~$86k cheaper to go w/ conventional.I did not include the opportunity cost of the $66k or the $62k. I also didn’t add in the tax consequence of the income that would have been made from the $66k and $62k.
[quote=scaredycat]didn’t somebody say it was easy to run the numbers previously? why isn’t this an easy clear calculation?[/quote]
Doing the actual calculation is easy. The hard part is figuring out which variables you want to include into your calculation and how robust you want your calculation to be. Also, hopefully with me fixing my errors, it should be a little clearer now.December 2, 2009 at 12:48 PM #489411Participantyes, but of course all of this goes out the window if in fact FHA PMI can be cancelled after a certain number of years. wher eis that FHA guru guy who was chased off the board a while back?
also, of cours,e there has to be some return imputed to the 66K in the fha scenario , since the 80k going into the house is getting a gain imputed to it. it mightbe very low, the bank ate of interest, or itmight be higher.
December 2, 2009 at 12:48 PM #489577Participantyes, but of course all of this goes out the window if in fact FHA PMI can be cancelled after a certain number of years. wher eis that FHA guru guy who was chased off the board a while back?
also, of cours,e there has to be some return imputed to the 66K in the fha scenario , since the 80k going into the house is getting a gain imputed to it. it mightbe very low, the bank ate of interest, or itmight be higher.
December 2, 2009 at 12:48 PM #489960Participantyes, but of course all of this goes out the window if in fact FHA PMI can be cancelled after a certain number of years. wher eis that FHA guru guy who was chased off the board a while back?
also, of cours,e there has to be some return imputed to the 66K in the fha scenario , since the 80k going into the house is getting a gain imputed to it. it mightbe very low, the bank ate of interest, or itmight be higher.
December 2, 2009 at 12:48 PM #490048Participantyes, but of course all of this goes out the window if in fact FHA PMI can be cancelled after a certain number of years. wher eis that FHA guru guy who was chased off the board a while back?
also, of cours,e there has to be some return imputed to the 66K in the fha scenario , since the 80k going into the house is getting a gain imputed to it. it mightbe very low, the bank ate of interest, or itmight be higher.
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