If it looks too good to be true – it probably is !
Got a spam this morning offering me a pre-approved $200,000 mortgage for $350 per month.
Given my own mortgage is in that ballpark, and payments are easily more than double the $350 per month, I thought I’d do some maths:
I’ll make a generous APR offer of 1.5%
Present Value of -200000
Rate per month of 0.125% (1.5/12)
Payments of 350
Plug that into your favourite spreadsheet:
NPER(Rate/Mth, PMT, PV) tells me that I’d have 1003 payments … or approx 83.5 years of mortgage indebtedness …
Just say NO !