Determining the monthly payment to account for interest requires a complicated formula shown below.A*is the monthly payment,*P*is the loan's initial amount,*i*is the monthly interest rate, and*n*is the total number of payments.
Attachment 25682
the problem is that *i* is determined monthly by blackrock after close consultation with jacob lew and ben bernanke, and *P* is actually the outstanding loan amount at the time you calculate the ream (reamorization), which you can do 26 pay periods per year. there is a reason they call it *ream*.
the trick is to continue to ream while never actually reducing the principal, kind of like a perpetual annual deficit or a continuing resolution, which is really no resolution at all.
word. secret to the financial world right there. live it learn it love it. and keep refinancing, that is how you make money.
Bookmarks