Thanks, $$$ for the correction in my lame number crunching which...

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Phoenixx

1,173 Posts.

71

01/11/22

22:06

Post #: 64533185
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Originally posted by $$$$$$$$: ↑

Most Mortgage Calculators are saying between $449 and $459 a month for $1ooK @ 2.5% for 25 Years,
which is between $5388 and $5508 a Year for that $100K 25 Year Loan.

Due to compounding Interest and fees Etc,

700K is showing as $3140 to $3150 a month @ 2.5% over 25 Years,
Around $37 680 to $37 800 a Year.

Which is about $727 a Week.

It's sort of been that way for a while,
Around $100 a week for every $100K Borrowed.

Increase rates to 5% and that $100K 25 year Loan goes to approx. $585 a month, $7 020 a Year or $135 a week.

And the 700K Loan @5% for 25Yrs goes to $4 092 a Month,
$49 104 a Year,
Approx. $944 a Week.

$700 k @7% for 25 Years goes to Approx. $4947 a Month,
$59 364 a Year,
$1 141 a Week.

A lot of people are / will be Trapped, that payed too much for Houses at the peak, in the last Year or So.
If Interest rates Increase which Historically they have been far Higher,
Many will not have the income to cover their Repayments.
And their House is likely not even be worth what they Owe.

It was irresponsible for Interest rates to have been kept too low,
for too long,
Especially with a Housing and Rental Affordability Crisis.
Houses need to correct at least 50% in many areas to be even close to what they should be,
For Interest rates to be at normal levels,
And people be able to afford to Pay them.

Interest Rate in Australia averaged 3.85 percent from 1990 until 2022,
reaching an all time high of 17.50 percent in January of 1990
and a record low of 0.10 percent in November of 2020.

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Thanks, $$$ for the correction in my lame number crunching which I did not include the principal component, did I ?? ... Der stupid me !!
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