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Dave (AKA SpaceMonkey),

This is good stuff...thanks!

I'm sorry, but I'm not just ANYBODY...I'm afraid that Excel didn't respond well when I typed in "ammortization" (my help guy comes back with "I don't know what you mean") and I don't understand the language they use to explain "PV", "FV", etc. One year of accounting in high school would have been time better spent if we'd used real world examples...

So, I went to Hugh's website and used the Generic Loan Amortization calculator. I'm uncertain as to whether or not I'm doing this right, but I calculated a 80-15-5 by doing the following:

a) First, I input the numbers to take out 45K (15% of my $300K house) on a 5-year loan at 6.275%. This comes to 875.74/month for 60 months.

b) Then, I calculated a monthly payment of $1761.03/month on a loan of $240K (360 months at 8%).

c) Working under this approach, we pay @$2,637/month for 5 years and then $1761 for 25 more years.

Is the logic I'm using correct? Is there a better calculator for doing this?

WRT the interest rates, you said (parenthetically): "Well, rates may vary... a 15% Loan-To-Value HELOC might currently come in at Prime Plus 0% - 1 7/8%... depending on the lender, which depends on which 1st you choose, which depends on a bunch of other schtuff." I get the first part and how the rate may vary from Prime Plus 0% -1 7/8, but what do you mean when you say this "..depends on a bunch of other schtuff."?

You also wrote, "You will doscover, however, that there aren't any calculators that help with the considerations of STRATEGY, in comparing future scenarios... still gotta use the carbonic processor for that." I know this has to do with the ARM part of the equation, but could you provide an illustrative example? Seems appropriate to inject here that I wouldn't be put off at all if you told me to pound sand here...

WRT the contingency offer being made by the builder, You validated my concern in writing: "Indeed, you see the conundrum! There is no free lunch... in order to assume the risks of the market they make it worthwhile by making sure they either profit quickly because folks knock down your door to buy, or they profit handsomely by the spread... or both! If your market is anything better than slow (likely,) it might make sense NOT to take the "guaranteed sale" and just amrket it yourself (with the MLS, through a relitter, if you choose.)"

I think we'll try to sell the house (through a realtor) independent of the other deal.

As for your explanation of the reflective coating on RayVT's dream house..."No, it's special reflective coating required by community standards. It's been decreed that we've selfishly accepted WAY too much moonlight, and since it originally came from the Sun and we're receiving it as a 3rd party benefit, undisclosed, we're now required to send it back into space!"

Aw heck, I'm in trouble with the neighborhood association again! I've been parking my car on our "SRC"--I thought it was a "parking pad" for the second car!

Thanks again!--Jake
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