[ucodegen]

The statement:
Amortization is simply the fact that you are paying down the loan principal, not the type of interest calculation used (as opposed to, for instance, an interest only loan where you only pay interest, without reducing the principal for a number of years).

is correct. There are different ways of doing the calculations. One way would be to pay a fixed % of the principle each month and all interest on principle for 1 one month period. The problem with this is that payments will be highest at the beginning of the mortgage and would drop over time.

Most people’s wages increase over time (not decrease, and maybe not increase in real terms but the same inflation that kills your salary reduces the dollar value of the balance on the mortgage). The other approach, and more common (ie. standard fixed rate amortizing loan), is to calculate a constant monthly payment that would pay off the mortgage by the end of the term and cover any accrued interest on remaining balance over the life of the mortgage. The calculations to figure this out are a little more involved. I can put the formula up (though there are also mortgage calculators that do the same thing)

[ucodegen]

The statement:
Amortization is simply the fact that you are paying down the loan principal, not the type of interest calculation used (as opposed to, for instance, an interest only loan where you only pay interest, without reducing the principal for a number of years).

is correct. There are different ways of doing the calculations. One way would be to pay a fixed % of the principle each month and all interest on principle for 1 one month period. The problem with this is that payments will be highest at the beginning of the mortgage and would drop over time.

Most people’s wages increase over time (not decrease, and maybe not increase in real terms but the same inflation that kills your salary reduces the dollar value of the balance on the mortgage). The other approach, and more common (ie. standard fixed rate amortizing loan), is to calculate a constant monthly payment that would pay off the mortgage by the end of the term and cover any accrued interest on remaining balance over the life of the mortgage. The calculations to figure this out are a little more involved. I can put the formula up (though there are also mortgage calculators that do the same thing)

[ucodegen]

The statement:
Amortization is simply the fact that you are paying down the loan principal, not the type of interest calculation used (as opposed to, for instance, an interest only loan where you only pay interest, without reducing the principal for a number of years).

is correct. There are different ways of doing the calculations. One way would be to pay a fixed % of the principle each month and all interest on principle for 1 one month period. The problem with this is that payments will be highest at the beginning of the mortgage and would drop over time.

Most people’s wages increase over time (not decrease, and maybe not increase in real terms but the same inflation that kills your salary reduces the dollar value of the balance on the mortgage). The other approach, and more common (ie. standard fixed rate amortizing loan), is to calculate a constant monthly payment that would pay off the mortgage by the end of the term and cover any accrued interest on remaining balance over the life of the mortgage. The calculations to figure this out are a little more involved. I can put the formula up (though there are also mortgage calculators that do the same thing)

[ucodegen]

So all those inflationary forces will soon produce dramatic inflation which will drive mortgage rates up, eventually to double digit interest rates.

A buy point for housing will come soon where the risk of ever-increasing mortgage interest rates will overshadow the downside risk associated with continued falling housing prices.

Actually, high interest rates dampen inflation. It dries up cheap capital. The last time we had inflation with high interest rates, house prices were held low.

If interest rates are high, it is hard for someone to buy in, which knocks the support out of house prices. The best time to buy is actually when interest rates are at their highest and about to go back down. Your down payment goes the furthest and house prices are held down by the cost of financing.

I’m not sure that future typical raises will keep pace with inflation

I am anticipating that they won’t for a while. Comparative wage rates out of country are lower. With a global economy, things such as wage rates tend to eventually balance out. I think that some high demand jobs will keep pace, but other low skill will not.

However, I’m keeping the faith on a deepening recession taking the markets down at least 10% from here.

Be careful. You have two forces at play, not one. Inflation drives markets up, recession drives them down.. The market is still trying to decide who is going to win – buy/short for only short periods of time.

[ucodegen]

So all those inflationary forces will soon produce dramatic inflation which will drive mortgage rates up, eventually to double digit interest rates.

A buy point for housing will come soon where the risk of ever-increasing mortgage interest rates will overshadow the downside risk associated with continued falling housing prices.

Actually, high interest rates dampen inflation. It dries up cheap capital. The last time we had inflation with high interest rates, house prices were held low.

If interest rates are high, it is hard for someone to buy in, which knocks the support out of house prices. The best time to buy is actually when interest rates are at their highest and about to go back down. Your down payment goes the furthest and house prices are held down by the cost of financing.

I’m not sure that future typical raises will keep pace with inflation

I am anticipating that they won’t for a while. Comparative wage rates out of country are lower. With a global economy, things such as wage rates tend to eventually balance out. I think that some high demand jobs will keep pace, but other low skill will not.

However, I’m keeping the faith on a deepening recession taking the markets down at least 10% from here.

Be careful. You have two forces at play, not one. Inflation drives markets up, recession drives them down.. The market is still trying to decide who is going to win – buy/short for only short periods of time.

[ucodegen]

So all those inflationary forces will soon produce dramatic inflation which will drive mortgage rates up, eventually to double digit interest rates.

A buy point for housing will come soon where the risk of ever-increasing mortgage interest rates will overshadow the downside risk associated with continued falling housing prices.

Actually, high interest rates dampen inflation. It dries up cheap capital. The last time we had inflation with high interest rates, house prices were held low.

If interest rates are high, it is hard for someone to buy in, which knocks the support out of house prices. The best time to buy is actually when interest rates are at their highest and about to go back down. Your down payment goes the furthest and house prices are held down by the cost of financing.

I’m not sure that future typical raises will keep pace with inflation

I am anticipating that they won’t for a while. Comparative wage rates out of country are lower. With a global economy, things such as wage rates tend to eventually balance out. I think that some high demand jobs will keep pace, but other low skill will not.

However, I’m keeping the faith on a deepening recession taking the markets down at least 10% from here.

Be careful. You have two forces at play, not one. Inflation drives markets up, recession drives them down.. The market is still trying to decide who is going to win – buy/short for only short periods of time.

[ucodegen]

So all those inflationary forces will soon produce dramatic inflation which will drive mortgage rates up, eventually to double digit interest rates.

A buy point for housing will come soon where the risk of ever-increasing mortgage interest rates will overshadow the downside risk associated with continued falling housing prices.

Actually, high interest rates dampen inflation. It dries up cheap capital. The last time we had inflation with high interest rates, house prices were held low.

If interest rates are high, it is hard for someone to buy in, which knocks the support out of house prices. The best time to buy is actually when interest rates are at their highest and about to go back down. Your down payment goes the furthest and house prices are held down by the cost of financing.

I’m not sure that future typical raises will keep pace with inflation

I am anticipating that they won’t for a while. Comparative wage rates out of country are lower. With a global economy, things such as wage rates tend to eventually balance out. I think that some high demand jobs will keep pace, but other low skill will not.

However, I’m keeping the faith on a deepening recession taking the markets down at least 10% from here.

Be careful. You have two forces at play, not one. Inflation drives markets up, recession drives them down.. The market is still trying to decide who is going to win – buy/short for only short periods of time.

[ucodegen]

So all those inflationary forces will soon produce dramatic inflation which will drive mortgage rates up, eventually to double digit interest rates.

A buy point for housing will come soon where the risk of ever-increasing mortgage interest rates will overshadow the downside risk associated with continued falling housing prices.

Actually, high interest rates dampen inflation. It dries up cheap capital. The last time we had inflation with high interest rates, house prices were held low.

If interest rates are high, it is hard for someone to buy in, which knocks the support out of house prices. The best time to buy is actually when interest rates are at their highest and about to go back down. Your down payment goes the furthest and house prices are held down by the cost of financing.

I’m not sure that future typical raises will keep pace with inflation

I am anticipating that they won’t for a while. Comparative wage rates out of country are lower. With a global economy, things such as wage rates tend to eventually balance out. I think that some high demand jobs will keep pace, but other low skill will not.

However, I’m keeping the faith on a deepening recession taking the markets down at least 10% from here.

Be careful. You have two forces at play, not one. Inflation drives markets up, recession drives them down.. The market is still trying to decide who is going to win – buy/short for only short periods of time.

[ucodegen]

Be careful of non-permitted. The work may not be up to building code. If it is a house that you really like, you might want to have someone inspect the non permitted add on.

[ucodegen]

Be careful of non-permitted. The work may not be up to building code. If it is a house that you really like, you might want to have someone inspect the non permitted add on.

[ucodegen]

Be careful of non-permitted. The work may not be up to building code. If it is a house that you really like, you might want to have someone inspect the non permitted add on.

[ucodegen]

Be careful of non-permitted. The work may not be up to building code. If it is a house that you really like, you might want to have someone inspect the non permitted add on.

[ucodegen]

Be careful of non-permitted. The work may not be up to building code. If it is a house that you really like, you might want to have someone inspect the non permitted add on.

[ucodegen]

Looks like no rebate check here either.

Single, over $150K AGI. A significant part through investments. Just barely slid under AMT (not that I have many deductions. What causes me to bounce against AMT limits is the difference in marginal tax rates for W-2 income vs Long Term Capital Gains). This also means that if I bought a house, the mortgage interest may not be deductible for me, or as deductible (so I stay renting for now).

[ucodegen]

Looks like no rebate check here either.

Single, over $150K AGI. A significant part through investments. Just barely slid under AMT (not that I have many deductions. What causes me to bounce against AMT limits is the difference in marginal tax rates for W-2 income vs Long Term Capital Gains). This also means that if I bought a house, the mortgage interest may not be deductible for me, or as deductible (so I stay renting for now).

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