Comments on: Rent … unless you want to buy :)

By: Fabrice Grinda

Fabrice Grinda — Fri, 25 Feb 2011 14:13:52 +0000

Just do the math :)

I have a house in Bedford which I am renting.

By: Doug

Doug — Fri, 25 Feb 2011 14:11:54 +0000

This is for NYC. How about somewhere in the vicinity like NJ?

By: Alex Jacobson

Alex Jacobson — Sun, 31 May 2009 16:00:50 +0000

oops — info about which states are recourse/non-recourse here http://www.loansafe.org/forum/foreclosure-laws/4130-recourse-v-non-recourse-states.html

By: Alex Jacobson

Alex Jacobson — Sun, 31 May 2009 15:59:15 +0000

Fabrice, a big factor in some parts of the country/world (but not New York) is whether the loans are non-recourse. California for example is non-recourse so you need to add in the value of a de facto put option when you take a mortgage.

By: Fabrice Grinda: Musings of an Entrepreneur » The Economy: The case for (relative) optimism

Thu, 09 Oct 2008 09:14:20 +0000

[...] pessimist. I urged my friends and whoever would listen to rent and not buy their apartments (Rent … unless you want to buy, I professed that the current economic imbalances would lead to disaster (Macro Perspectives on [...]

By: Fabrice Grinda: Musings of an Entrepreneur » How did you raise your very first round of financing?

Wed, 16 Apr 2008 18:22:12 +0000

[...] ran a sophisticated real estate rent versus buy model. The model and my rule of thumb analysis (see Rent … unless you want to buy) were screaming BUY! I bought a large 1 bedroom apartment on 54th and 2nd for $115,000, putting [...]

By: Fabrice Grinda

Fabrice Grinda — Sat, 02 Dec 2006 19:30:43 +0000

Phil: I just typed “mortgage calculator” into Google and clicked on the first one… The other ones yield similar results…

By: phil

phil — Sat, 02 Dec 2006 18:34:15 +0000

Fabrice, as far as I can tell you’ve proven only that bankrate.com has mortgage estimates that are terribly in favor of the lender. Why on earth would anyone take out a loan that only had you paying approximately $10 in principal every month? That’s a HORRIBLE loan (less than .1% principal paid in the first year). Find a better lender.

By: Fabrice Grinda

Fabrice Grinda — Sat, 02 Dec 2006 15:26:58 +0000

Phil,

You are forgetting that the interest compounds as well. Just use a mortgage calculator to do the math. See: http://www.bankrate.com/gookeyword/mortgage-calculator.asp?loanAmount=2000000&nrOfYears=30&nrOfMonths=360&interestRate=6&Submit=Calculate

By: phil

phil — Sat, 02 Dec 2006 11:20:04 +0000

Can you explain how in your NY example 2,000,000 devided by 360 (12 months x 30 years) equals a monthly payment over $11 thousand dollars? My calculator says that’s about $5555.56. Even if you add the 5.75% interest it’s only another $319ish dollars.