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pookiedookie232 t1_irgbp70 wrote

Reply to comment by hmiamid in [OC] House price you can afford by paying 1000/month for 30 years vs. interest rate by hmiamid

Been a lot of years since I did real math so I probably won't go calculate this, but even if the function never reaches zero, anything under half a cent I think we could say rounds to zero and would put your max house price at $0.

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ajour7 t1_irgdhzj wrote

If your house price is $0 then you cannot accrue interest so you cannot logically have a payment of $1000 (or any amount really)

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pookiedookie232 t1_irgevm1 wrote

Yep, once I looked at the formula I was like, "Doh!" Can never actually be zero. But it could be less than half a cent, which is essentially zero due to rounding in financial systems. I calculated that 240,480,000% interest will net a $1,000 payment for 360 months on a .499 cent loan.

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ajour7 t1_irgdqto wrote

Btw, Great visualization OP!! This is something very useful for anyone who has bought or has aspirations for buying a home.

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