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A comment on The Terrifying Reality of Long-Term Unemployment. Parent comment

Re:The Terrifying Reality of Long-Term Unemployment by riggins on Monday April 15, 2013 @03:53PM (#5553850)
"at worst, it depreciates by 50%, you still get $1k back from every month you paid off the mortgage"

Not sure what you mean by 'get $1k back from every month you paid off mortgage'

Here's rough justice. $300K, 6%, 30 yr fixed mortgage.

Annual payment is $22K(about your 2K/month) for the life of the mortgage.

Avg int over the first 5 years is $17.5K.

So after the first five years you've accumulated $22K in equity.

If your house goes down 50% you own a $150K house with a $278K mortgage.

[ Parent | on HN ]
Re:The Terrifying Reality of Long-Term Unemployment by aggronn on Monday April 15, 2013 @04:24PM (#5554054)
You're right, I ignored the depreciation on the remainder of the mortgage and assumed that when you sold the house, there would be no loss on that.

Incredibly stupid example. Embarrassing really. Objection withdrawn

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