No. of Recommendations: 10
Still, the numbers aren't as wildly magical as Ray insists.

I don't "insist" anything. I just do the math and report the answer. Have I made a mistake? Quite possible. Show me where. But just saying "I don't like the answer" doesn't cut it.

What's surprising is that someone in the mortgage business would be surprised at this. How much more is the total payments for a mortgage when the interest rate in increased, or the loan term is lengthened? The numbers grow very rapidly for even modest changes in rate or term.

Anybody and check my math for themselves. If you can't do it in Excel, no problem, there's plenty of online calculators. Like this one:

Put in $15K, $150/mo, for 40 years at 8%, compounded monthly.
Then change the rate to 10.5% to include avg dividends of 2.5%.
Those figures are in the same ballpark as the ones I stated, aren't they.
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