Subject: Re: Re: The Primerica "Simple Interest" argument

Comments:
: With simple interest mortgage you can in actuality pay 0% (ZERO!) interest. : The key is to divide you monthly payment by 30, or 31 day and make small payments EACH and EVERY day. : : : ---- : : The SOS make exaggerated claims for what they call a "simple interest biweekly". It benefits the borrower by reducing the loan balance on the day a payment is received. The benefit, however, is very small. : : In the $200,000 mortgage at 6.60% referred to above, interest payments on a simple interest biweekly are $167, 306. This is only $543 less than when the monthly payment is increased by 1/12. You only have to raise the interest rate from 6.60% to 6.63% to eliminate the benefit. And if you raise the rate to 8%, which is actually on the low side of the deals promoted by the SOS, it is a loser big time.

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