++ ATOT official NEF thread part IV ++

[Red Squirrel]

Was curious if I can use Chat GPT to give mortgage advice. What could go wrong?

Basically asked how long I have left on my mortgage, but then how to bring it down to 3 years. At first I didn't provide interest rate, just wanted to see if it could figure it out based on info I gave, but then I ended up giving the rate. No idea how accurate any of this actually is though and the info near the end is contradictory so I kinda take it with a grain of salt.

I have $45,761 left on my mortgage and I make bi-weekly payments of $390, $80.91 of which goes towards interest. How many years until it is paid off?

To calculate the time until the mortgage is paid off, we need to know the principal amount of the mortgage, the interest rate, and the payment frequency.

Assuming that the interest rate is fixed and equal to the interest portion of each payment, we can calculate the principal amount of the mortgage by dividing the interest portion by the interest rate:

Principal amount = Interest portion / Interest rate
Principal amount = $80.91 / $80.91 = $1,000

Now we can use the following formula to calculate the time until the mortgage is paid off:

n = -log(1 - r * P / M) / log(1 + r)

Where:

n is the number of payment periods (in bi-weekly periods)
r is the bi-weekly interest rate (which is the annual interest rate divided by 26)
P is the principal amount of the mortgage
M is the bi-weekly payment amount

Plugging in the values we have:

r = 0.04 / 26 = 0.0015385
P = $1,000
M = $390

n = -log(1 - r * P / M) / log(1 + r)
n = -log(1 - 0.0015385 * 1000 / 390) / log(1 + 0.0015385)
n = 162.79

Therefore, it will take approximately 163 bi-weekly payments, or about 6.25 years, to pay off the mortgage.

The interest rate is 3.49%, or 4.582% including insurance

Thank you for the updated information.

Using the new interest rate of 4.582%, the bi-weekly interest rate would be:

r = 4.582% / 26 = 0.0176

Using the same formula as before, but with the updated interest rate:

n = -log(1 - r * P / M) / log(1 + r)
n = -log(1 - 0.0176 * 1000 / 390) / log(1 + 0.0176)
n = 145.89

Therefore, it will take approximately 146 bi-weekly payments, or about 5.6 years, to pay off the mortgage.

If I wanted to have it paid off in 3 years how much should the payments be?

To calculate the bi-weekly payment amount needed to pay off the mortgage in 3 years, we can use the same formula as before, but solve for the payment amount, M:

M = P * r * (1 + r)^n / [(1 + r)^n - 1]

Where:

M is the bi-weekly payment amount
P is the principal amount of the mortgage
r is the bi-weekly interest rate (which is the annual interest rate divided by 26)
n is the total number of bi-weekly payments (in this case, 78, since there are 26 bi-weekly periods in a year and we want to pay off the mortgage in 3 years)

Plugging in the values we have:

P = $1,000
r = 0.0349 / 26 = 0.0013404
n = 78

M = $1,000 * 0.0013404 * (1 + 0.0013404)^78 / [(1 + 0.0013404)^78 - 1]
M = $591.60

Therefore, to pay off the mortgage in 3 years, you would need to make bi-weekly payments of $591.60.

Can you give me a breakdown of how long it will take based on these payments: $600,$650,$700,$750,$800

Sure! Here's a breakdown of how long it would take to pay off the mortgage with bi-weekly payments of $600, $650, $700, $750, and $800:

Bi-weekly payment of $600:

Using the formula from earlier:

n = -log(1 - r * P / M) / log(1 + r)
n = -log(1 - 0.0349/26 * 1000 / 600) / log(1 + 0.0349/26)
n = 107.18

It would take approximately 108 bi-weekly payments, or about 4.15 years to pay off the mortgage with bi-weekly payments of $600.

Bi-weekly payment of $650:

n = -log(1 - r * P / M) / log(1 + r)
n = -log(1 - 0.0349/26 * 1000 / 650) / log(1 + 0.0349/26)
n = 93.15

It would take approximately 94 bi-weekly payments, or about 3.62 years to pay off the mortgage with bi-weekly payments of $650.

Bi-weekly payment of $700:

n = -log(1 - r * P / M) / log(1 + r)
n = -log(1 - 0.0349/26 * 1000 / 700) / log(1 + 0.0349/26)
n = 82.48

It would take approximately 83 bi-weekly payments, or about 3.19 years to pay off the mortgage with bi-weekly payments of $700.

Bi-weekly payment of $750:

n = -log(1 - r * P / M) / log(1 + r)
n = -log(1 - 0.0349/26 * 1000 / 750) / log(1 + 0.0349/26)
n = 74.48

It would take approximately 75 bi-weekly payments, or about 2.88 years to pay off the mortgage with bi-weekly payments of $750.

Bi-weekly payment of $800:

n = -log(1 - r * P / M) / log(1 + r)
n = -log(1 - 0.0349/26 * 1000 / 800) / log(1 + 0.0349/26)
n = 67.59

It would take approximately 68 bi-weekly payments, or about 2.61 years to pay off the mortgage with bi-weekly payments of $800.

Please note that these calculations are based on the information you provided and assuming that the interest rate remains fixed over the payment period. Actual payment duration may differ depending on the actual interest rate charged by your mortgage provider and other factors.

 

[IronWing]

Somewhere I have a spreadsheet I could send you that allows one to play scenarios with mortgage payments including extra lump sum payments and increased monthly payments. However, given the current inflation rate, you are paying an effective negative interest rate on your mortgage and maybe should consider dragging it out to the bitter end.

 

[Red Squirrel]

It opens up next year, so the rate will probably go up, so ideally I do need to start thinking of increasing the payments. Need to pay off credit line first though...

I used to pay $650 but had to lower that due to inflation as my costs of living were starting to exceed my income so by lowering it it bought me a bit of breathing room so I have money left over to put on the credit line. Once that's paid off I will increase mortgage again if I can afford to do it. Maybe bring it to $500.

Ultimately I really need to start thinking about a 2nd source of income though since inflation will exceed my income again eventually, even once it's paid off.

 

[Red Squirrel]

Cool to see daylight out at 6am. A sign that summer is close.

 

[Ajay]

NEF.

 

[Ajay]

NEF.

 

[sdifox]

Tire shop nef

 

[bigboxes]

moo

 

[Charmonium]

Saw the fox at the food bowl for the first time ever. I've seen him/her/it skirting the edge of the spotlights since well into last year. There's probably more than one though. Hard to believe this is the same one though. The one I've seen before was much more skittish.

I'm hoping they like the taste of raccoon.

 

[Ajay]

B's lose Game 7 in OT.

Bummer!

 

[Red Squirrel]

Nef

 

[sdifox]

Ni

 

[Red Squirrel]

I didn't think that resize2fs would take that long... did it over SSH over the internet which is kinda ballsy. If for whatever reason my internet connection gives out it will kill the SSH session and also the process, corrupting the entire file system. I should have thought this through better and ran it with &.

 

[Red Squirrel]

Just realized when I grew the array it had to resync. I guess that makes sense. That's why the resize2fs is taking so long because it's also resyncing at same time. Doh!

 

[Charmonium]

female cartoon char - I'm only 23

me - sorry sweetie but you're 30's minimum.

 

[Red Squirrel]

Resize done!

Pretty much done with this upgrade now. I have an extra 10TB drive that I was going to use as part of the raid 5 but I think I'll just keep it as a spare.

 

[Red Squirrel]

It seems every time I try to switch to my shoes, we get snow. Maybe I need to just keep wearing my boots until June lol.

 

[Ajay]

NEF.

 

[Ajay]

NEF.

 

[IronWing]

Long-nosed snake nef

 

[sdifox]

nyaa

 

[Ajay]

Resize done!

Pretty much done with this upgrade now. I have an extra 10TB drive that I was going to use as part of the raid 5 but I think I'll just keep it as a spare.

I thought you bought twice that capacity? Derp - redundancy for 500 Alex!

 

[Stiff Clamp]

naga 🐍

 

[IronWing]

Douchebag nef

 

[Red Squirrel]

I thought you bought twice that capacity? Derp - redundancy for 500 Alex!

Yeah redundancy, also one of the arrays is a raid 10 so you lose half the space. Actually both the raid 10 and raid 5 in my case should be same capacity now that I think of it, due to number of drives. md0 should be able to go up to 18 but I need to take it offline to do the resize past 16. I might do that some time once I'm home.

I think you can add more drives to a raid 10 to make it bigger too, once I pull out the 1TB drives from the retired array I might try to resize md3 a bit.

After all this I'll be set for a while I think.