Total Cost Of Credit vs Monthly Payments

Written by David Wilding


I read a press releaserepparttar other day which points torepparttar 112356 fact we need to be very careful with our finances. The subject ofrepparttar 112357 release was home mortgages. A company was announcingrepparttar 112358 availability of 40 year mortgages for its customers. The stated purpose was to lowerrepparttar 112359 monthly payments to make buying a home more affordable.

Whenever I hearrepparttar 112360 phrase “more affordable”, I put my hand on my wallet becauserepparttar 112361 attempt to empty it will begin any moment. Almost never is that phrase used in relation torepparttar 112362 total cost of financing. It is always used in reference torepparttar 112363 size ofrepparttar 112364 monthly payment, as in this example.

Let’s see what it really means. I didrepparttar 112365 math. A mortgage for a $100,000 home at 6% for 30 years would have a monthly payment of about $600 for principal and interest. You would pay about $216,000 overrepparttar 112366 life ofrepparttar 112367 loan of which $116,000 would be interest..

A mortgage on that same home for 40 years would be at 6.25%, with a monthly payment of $565. The payments overrepparttar 112368 life of repparttar 112369 loan would total about $271,200 and $171,200 ofrepparttar 112370 total would be interest.

The forty year mortgage has a higher interest rate (usually between.25 and .50 percent) becauserepparttar 112371 lender has his money at risk for a longer time (Lenders are well aware that time is money. You should be as aware).

Going Public Comparison Chart

Written by William Cate


Going Public Comparison Chart By William Cate http://home.earthlink.net/~beowulfinvestments/

U.S. Securities and Exchange Commission (SEC) regulatory compliance requirements are directly related torepparttar costs of taking any private company public and being a public company inrepparttar 112355 United States.

For U.S. Domestic companies, attorneys and accountants must put their careers and firms at risk in doing a SEC filing for any company. They will charge their clients in accordance with that risk. Because Non-US company filling requirements don't require an attorney to accept responsibility forrepparttar 112356 content of a SEC filing and becauserepparttar 112357 accountants aren't required to use GAAP and thus aren't as liable should there be errors inrepparttar 112358 audit,repparttar 112359 costs of professional services are far lower.

The annual filings for a US Domestic Company are more numerous and require attorney and accountant liability forrepparttar 112360 content ofrepparttar 112361 SEC documents. For these reasons you can take public and maintainrepparttar 112362 registration for a Non-US company for about one-tenthrepparttar 112363 costs of taking public and maintainingrepparttar 112364 registration of a US Domestic Company.

US Domestic Companies Non-US Companies

Initial Registration Initial Registrat SB2* requires GAAP 20F no GAAP audit audit and attorney and no requirement responsibility for attorney for document responsibility content. for document * Least regulatory onerous content.

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