New answers tagged compound-interest
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Is this actually something you could compute in a formula using according some variables as assumptions?
Yes.
It's called "volatility" which is a quantitative metric of the "risk" of a specific investment. Your mortgage has basically 0% volatility but a low rate of return. The S&P 500 has a much higher average rate of return but also ...
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Is this actually something you could compute in a formula using
according some variables as assumptions?
This is an age old question, and isn't new.
If you get a 30 year mortgage, and keep that mortgage until the loan is paid off, then due to the nature of the declining loan amount less and less of the payment is interest. Also over those decades as your ...
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Extra payments on your mortgage, ignoring taxes, are identical to investing in bonds that pay whatever your mortgage loan rate is. If you're in the US, most homeowners these days can't itemize to deduct their mortgage interest so you can usually ignore taxes but you could account for the additional tax benefit as well if you're in the minority.
While your ...
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