Ken said the following about the home mortgage:
> This comes from a calculation based on
> the "Uniform Series Present Worth" factor.
> You seem to be questioning the basic economic
> concept of present worth. I accept this
> concept, if the interest rate is
> reasonable. Certainly not anything like the
> double digits that you'll run into if you don't
> pay off your credit card bill on time. �And too
> many "sheeple" fall into this trap, admittedly.
Ken:
Since the audience I am writing for may be just the typical honest working man or woman, I have to keep the examples that I use direct and easy to grasp. I have to avoid abstract economics at all costs, as overly complicating the examples will only lose the reader.
Please remember that I am not writing a college textbook here. The example that I used was only to point out that the banks have a much different method of calculating 8% than what most people believe it is going to work out to.
The example you used is certainly true. There are many factors that influence the value of real estate, and thirty years is a hell of a long time to be chained to a financial obligation.
That will be what they relate to ultimately--- how much will this end up costing me.
Other factors, such as the flucuation of raw housing materials cost, location, economic factors (national and local), demand for houses in the area, local labor market situation, income level of the buyer, will influence the cost of acquisition.
The quality of the neighborhood the house is located in, whether or not it needs repairs, or has had new remodeling or landscaping will also affect the value of the house.
I wasn't questioning any economic principles, but, any example that I use has to keep in mind the level of intellect of the reading audience.
The things I will talk about will be new to most of the people who will become interested in the subject matter, so I have to keep it at a certain level to hold the readers interest. If I dwell in one area too long, or go into too much detail, I run the risk of:
01) Potential reader not buying the book.
02) Buyer not completing the book
03) Bad word of mouth because of #2.
So, I decided to keep the example at a constant, just as the values are the day they first sign the mortgage papers.
Peace and Prayers,
Kent Daniel Bentkowski
Buffalo, New York USA
Re: John Carpenter Responds?
KentDB741
location: Buffalo, New York USA
listening to: The sweet music of YES
registered: 2001.11.12
posts: 1355
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KentDB741
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Ken said the following about the home mortgage:
> This comes from a calculation based on
> the "Uniform Series Present Worth" factor.
> You seem to be questioning the basic economic
> concept of present worth. I accept this
> concept, if the interest rate is
> reasonable. Certainly not anything like the
> double digits that you'll run into if you don't
> pay off your credit card bill on time. �And too
> many "sheeple" fall into this trap, admittedly.
Ken:
Since the audience I am writing for may be just the typical honest working man or woman, I have to keep the examples that I use direct and easy to grasp. I have to avoid abstract economics at all costs, as overly complicating the examples will only lose the reader.
Please remember that I am not writing a college textbook here. The example that I used was only to point out that the banks have a much different method of calculating 8% than what most people believe it is going to work out to.
The example you used is certainly true. There are many factors that influence the value of real estate, and thirty years is a hell of a long time to be chained to a financial obligation.
That will be what they relate to ultimately--- how much will this end up costing me.
Other factors, such as the flucuation of raw housing materials cost, location, economic factors (national and local), demand for houses in the area, local labor market situation, income level of the buyer, will influence the cost of acquisition.
The quality of the neighborhood the house is located in, whether or not it needs repairs, or has had new remodeling or landscaping will also affect the value of the house.
I wasn't questioning any economic principles, but, any example that I use has to keep in mind the level of intellect of the reading audience.
The things I will talk about will be new to most of the people who will become interested in the subject matter, so I have to keep it at a certain level to hold the readers interest. If I dwell in one area too long, or go into too much detail, I run the risk of:
01) Potential reader not buying the book.
02) Buyer not completing the book
03) Bad word of mouth because of #2.
So, I decided to keep the example at a constant, just as the values are the day they first sign the mortgage papers.
Peace and Prayers,
Kent Daniel Bentkowski
Buffalo, New York USA
> This comes from a calculation based on
> the "Uniform Series Present Worth" factor.
> You seem to be questioning the basic economic
> concept of present worth. I accept this
> concept, if the interest rate is
> reasonable. Certainly not anything like the
> double digits that you'll run into if you don't
> pay off your credit card bill on time. �And too
> many "sheeple" fall into this trap, admittedly.
Ken:
Since the audience I am writing for may be just the typical honest working man or woman, I have to keep the examples that I use direct and easy to grasp. I have to avoid abstract economics at all costs, as overly complicating the examples will only lose the reader.
Please remember that I am not writing a college textbook here. The example that I used was only to point out that the banks have a much different method of calculating 8% than what most people believe it is going to work out to.
The example you used is certainly true. There are many factors that influence the value of real estate, and thirty years is a hell of a long time to be chained to a financial obligation.
That will be what they relate to ultimately--- how much will this end up costing me.
Other factors, such as the flucuation of raw housing materials cost, location, economic factors (national and local), demand for houses in the area, local labor market situation, income level of the buyer, will influence the cost of acquisition.
The quality of the neighborhood the house is located in, whether or not it needs repairs, or has had new remodeling or landscaping will also affect the value of the house.
I wasn't questioning any economic principles, but, any example that I use has to keep in mind the level of intellect of the reading audience.
The things I will talk about will be new to most of the people who will become interested in the subject matter, so I have to keep it at a certain level to hold the readers interest. If I dwell in one area too long, or go into too much detail, I run the risk of:
01) Potential reader not buying the book.
02) Buyer not completing the book
03) Bad word of mouth because of #2.
So, I decided to keep the example at a constant, just as the values are the day they first sign the mortgage papers.
Peace and Prayers,
Kent Daniel Bentkowski
Buffalo, New York USA
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They STILL Live - John Carpenter Responds! – KentDB741 on July 22nd, 2002-
John Carpenter Responds? – Reg on July 23rd, 2002-
Re: John Carpenter Responds? – KentDB741 on July 23rd, 2002
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My Pagan Dreams – Reg on July 24th, 2002
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I don't understand the subject of my college degree? – KentDB741 on July 25th, 2002
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No. – Gregory on July 25th, 2002
Re: My Pagan Dreams – KentDB741 on July 25th, 2002
Re: My Pagan Dreams – KentDB741 on July 25th, 2002
Re: John Carpenter Responds? – BlockDog on July 23rd, 2002
Re: John Carpenter Responds? – krm on July 23rd, 2002
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