Doc:
The "fun chart" DOES take into consideration that the interest you would earn would be on a declining principle. Your balance would slowly dwindle until you had nothing at year 40.
If I hadn't, I would have reported to you the true but misleading result that you could have had a principle balance of about $375,000 after 40 years which would equal over $9,300 per year. I didn't do that because I wanted an apples for apples comparison, which I have provided.
Sorry, but the figures are correct as they stand. I will disclose, however, that the one assumption I made was a 7% annual return on investment. If you assume a higher return on investment, then the $1700 per year figure would be higher. If you assume a lower return on investment, then the $1700 per year figure would be lower. If you assume a zero percent return on investment, then you do indeed get (approximately) $600 per year as some people have tried to suggest.
I just don't think a 0% return on investment is a realistic assumption. I believe 7% is realistic and is in line with most mortgage and bond money. Of course, if you are financing through Disney at 13% or whatever, then that $1700 per year figure goes way up to $2900 per year.
By the way, I can save you a TON of interest on your home mortgage. And I'm not selling anything. I'm just providing information on what you can do with your present mortgage to save oodles of money. Or you can get the book "The Banker's Secret". Same thing.
Right now I'm saving my money for more Mickey Premium Bars. Boy those are good. . .
The "fun chart" DOES take into consideration that the interest you would earn would be on a declining principle. Your balance would slowly dwindle until you had nothing at year 40.
If I hadn't, I would have reported to you the true but misleading result that you could have had a principle balance of about $375,000 after 40 years which would equal over $9,300 per year. I didn't do that because I wanted an apples for apples comparison, which I have provided.
Sorry, but the figures are correct as they stand. I will disclose, however, that the one assumption I made was a 7% annual return on investment. If you assume a higher return on investment, then the $1700 per year figure would be higher. If you assume a lower return on investment, then the $1700 per year figure would be lower. If you assume a zero percent return on investment, then you do indeed get (approximately) $600 per year as some people have tried to suggest.
I just don't think a 0% return on investment is a realistic assumption. I believe 7% is realistic and is in line with most mortgage and bond money. Of course, if you are financing through Disney at 13% or whatever, then that $1700 per year figure goes way up to $2900 per year.
By the way, I can save you a TON of interest on your home mortgage. And I'm not selling anything. I'm just providing information on what you can do with your present mortgage to save oodles of money. Or you can get the book "The Banker's Secret". Same thing.
Right now I'm saving my money for more Mickey Premium Bars. Boy those are good. . .