"at worst, it depreciates by 50%, you still get $1k back from every month you pa... | Hacker News

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riggins on April 15, 2013 | parent | context | favorite | on: The Terrifying Reality of Long-Term Unemployment

"at worst, it depreciates by 50%, you still get $1k back from every month you paid off the mortgage"

Not sure what you mean by 'get $1k back from every month you paid off mortgage'

Here's rough justice. $300K, 6%, 30 yr fixed mortgage.

Annual payment is $22K(about your 2K/month) for the life of the mortgage.

Avg int over the first 5 years is $17.5K.

So after the first five years you've accumulated $22K in equity.

If your house goes down 50% you own a $150K house with a $278K mortgage.

aggronn on April 15, 2013 [–]

You're right, I ignored the depreciation on the remainder of the mortgage and assumed that when you sold the house, there would be no loss on that.

Incredibly stupid example. Embarrassing really. Objection withdrawn

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