Saturday, August 11, 2007

What Mortgage Disclosures Should Look Like!

Borrower Smith - Loan Amount $400,000
Property Value (subject to change) $450,000

Type of Loan: Option ARM

Year/Month.......... Payment............... Due Date
Jan 2008............... $1400............... 1/31/2008
Feb 2008............... $1400............... 2/31/2008
Mar 2008............... $1400............... 3/31/2008
...
...
Jan 2011............... $3200............... 1/31/2011
Feb 2011............... $3200............... 2/31/2011
...
...
Dec 2037............... $3200............... 12/31/2037


30 years of 12 months = 360 lines long


This solves the problem of people not being able to do math with interest rates. It assumes a fixed interest rate, but you get the idea.

2 comments:

Anonymous said...

Don't forget to put the total amount paid on that sheet. All my friends say "I paid $450K for my house." I ask "No interest?" Well, yeah, but...

Math said...

Great Idea~
We need a column for mortgage balance remaining or principal paid!