If you could change one thing about financial regulations

[Sharky1203]

For me it's this compound interest. How banks get away with this is just crazy. IMO, this doesn't allow people to gain equity. People shouldn't have to pay 10 years in order to make headway on a mortgage/loan.

Let's keep the politics out of it!!!

 

[prlyles]

For me it's this compound interest. How banks get away with this is just crazy. IMO, this doesn't allow people to gain equity. People shouldn't have to pay 10 years in order to make headway on a mortgage/loan.

Let's keep the politics out of it!!!

The percent interest you pay is the same the first day of the loan to the last day of the loan.

 

[seminole97]

For me it's this compound interest. How banks get away with this is just crazy. IMO, this doesn't allow people to gain equity. People shouldn't have to pay 10 years in order to make headway on a mortgage/loan.

Let's keep the politics out of it!!!

Compound interest?
That's the interest you earn on prior earned interest.

Not following how you're applying that to a mortgage.

 

[HawkInDC]

For me it's this compound interest. How banks get away with this is just crazy. IMO, this doesn't allow people to gain equity. People shouldn't have to pay 10 years in order to make headway on a mortgage/loan.

Let's keep the politics out of it!!!

I have gained 7 figures in equity in my house and I benefit from compound interest on investments.

NFW I am giving that up.

I am not sure you understand math or finance.

 

[Titus Andronicus]

I would eliminate any rules relating to ESG reporting. Keep the SEC out of this stuff. Let companies do it on their own if they like.

Saving the planet by using other peoples' money needs to stop.

 

[Fijimn]

For me it's this compound interest. How banks get away with this is just crazy. IMO, this doesn't allow people to gain equity. People shouldn't have to pay 10 years in order to make headway on a mortgage/loan.

Let's keep the politics out of it!!!

The word you are looking for is amortization

 

[IAFB2021Champs]

The percent interest you pay is the same the first day of the loan to the last day of the loan.

A borrower pays more interest in the early part of the mortgage, while the latter part favors the principal balance. Making a larger down payment will immediately boost the equity in your home.

 

[IAFB2021Champs]

For me it's this compound interest. How banks get away with this is just crazy. IMO, this doesn't allow people to gain equity. People shouldn't have to pay 10 years in order to make headway on a mortgage/loan.

Let's keep the politics out of it!!!

Takes money to make money.
That’s how I stay poor

 

[HawkInDC]

Public officials involved in making laws that impact companies should not be allowed to trade individual stocks or any ETF narrower than the the broad S&P or other > 500 stock basket.

 

[prlyles]

A borrower pays more interest in the early part of the mortgage, while the latter part favors the principal balance. Making a larger down payment will immediately boost the equity in your home.

I said "percent interest" not amount of interest.

 

[seminole97]

A borrower pays more interest in the early part of the mortgage, while the latter part favors the principal balance. Making a larger down payment will immediately boost the equity in your home.

"The percent interest you pay is the same the first day"

3.5% on $300,000 vs. 3.5% on the last payment of $1200, the percent interest is the same, the amount outstanding to calculate that same rate against is what changes.

 

[seminole97]

Eliminate taxes on any savings and investment.
The cost of lost compounding outstrips the tax collection. It's a social net loss.

Let savings grow, they actually make everything else that makes our lives better possible.

 

[Finance85]

Bank reporting large transactions to the federal government.

 

[Sharky1203]

I have gained 7 figures in equity in my house and I benefit from compound interest on investments.

NFW I am giving that up.

I am not sure you understand math or finance.

I do. The equity may go up (value of home depending on the market) but how much of the first mortgage payment actually goes to the principle?

 

[seminole97]

I do. The equity may go up (value of home depending on the market) but how much of the first mortgage payment actually goes to the principle?

You’re not required to pay the minimum.
$500 extra on your payment go entirely to principal, and you won’t pay interest on that $500 for the remainder of the loan that you would have otherwise.

If your interest rate is really low, you might decide you’re better off investing the money than paying down the debt.

 

[Sharky1203]

You’re not required to pay the minimum.
$500 extra on your payment go entirely to principal, and you won’t pay interest on that $500 for the remainder of the loan that you would have otherwise.

If your interest rate is really low, you might decide you’re better off investing the money than paying down the debt.

I fully understand that. That's exactly how I paid off my house in 12 years. But if we eliminate compound interest then we wouldn't need 30-year loans or 60 if in Cali.

Most young families can barely afford the mortgage payment as it is. Then you add inflation that's going on, $500 could be the difference in getting food or not.

 

[seminole97]

I fully understand that. That's exactly how I paid off my house in 12 years. But if we eliminate compound interest then we wouldn't need 30-year loans or 60 if in Cali.

You pay interest on the outstanding principal.
That's not 'compound interest'.
How are you imagining this would be funded differently?
How would early re-payment affect the change you envision?

 

[luvmyhawks]

I fully understand that. That's exactly how I paid off my house in 12 years. But if we eliminate compound interest then we wouldn't need 30-year loans or 60 if in Cali.

Most young families can barely afford the mortgage payment as it is. Then you add inflation that's going on, $500 could be the difference in getting food or not.

Stop it. Please. Just because you keep saying it doesn’t make it true.