Group Project.zip Size : 1359.619 Kb Type : zip |
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Heather Murray
Mortgage Project
11/19/12
My New Interest in Interest
While working on this project I learned some new things: that banks are weasels and why they’re so rich. After examining the amortization spreadsheet and working through the problems associated with it I was shocked, to put it mildly. The question/answer that really got me was the one where I was asked the number of the first payment when more of my monthly payment would be going towards the principle rather than the interest. I started at the top of the spreadsheet and began to scroll down, and down, and still further down. I finally found my answer sitting more halfway through the spreadsheet at number 194. The 194th payment, 194 months in, I couldn’t believe it. It would take me over sixteen years to make what felt like any real headway! Before this project I honestly had no idea how a mortgage worked. I figured the banks made about ten percent off of whatever the amount was that they loaned you, but I had no idea that it was closer ninety percent, and in this case, 92.706% of the principle was paid back in addition to the full 100% of the principle amount borrowed. It’s outrageous. Needless to say, I have a whole new view of money lenders and the way interest on a mortgage works. I will definitely think twice before penning my name to any loan.