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· 19 min read
PMI insures the lender and is billed to the borrower. On a $380,000 loan that is $228 a month at an illustrative 0.72 percent. The law gives you a request at 80 percent and an automatic exit at 78 percent — month 124 and month 135 on the schedule, but up to 86 months apart in real life.
· 12 min read
A balloon loan is priced on a long amortisation and repaid on a short one, and the whole instrument lives in that gap. On $250,000 at 6.5%, amortised over 30 years and due at 7, the payment is $1,580.17 and the lump sum still owed is $226,040.61 — 90.4% of what you borrowed.
· 3 min read
Refinancing pays off when monthly savings cover the closing costs before you move or sell. See the break-even math, the rate-drop rule of thumb, and what to check.
· 3 min read
An employer 401(k) match is free money: your company adds to your retirement savings when you contribute. See common match formulas, vesting, and why to grab the full match.
· 3 min read
New cars lose value fastest in year one, then 15–20% a year. See the depreciation curve, why the first year hits hardest, and a worked example.
· 3 min read
Work out a pay raise as a percentage and a new salary, then adjust for inflation to see your real raise. Formulas, worked examples and common mistakes.
· 14 min read
A lender does not decide how much you can borrow. A ratio decides a monthly payment, and an interest rate turns that payment into a principal. On $7,500 of income the two steps give $1,805 and $285,571 — and clearing one $280 debt adds $44,299.
· 3 min read
Turn an hourly rate into a yearly salary: multiply rate by hours per week by weeks worked. See the full-time math, gross vs. net, and worked examples.
· 18 min read
Equal thirds of $2,400 charge the same for 180 square feet and for 100. Floor area is better and still leaves someone envious. The sealed-bid envy-free split gives $850, $700 and $850 — and nobody wants to swap.
· 17 min read
A 5.00 percent start with 2/2/5 caps can legally reach 10.00 percent and a payment of $2,484.14 — 54.3 percent above where it began. That worst case is computable before you sign, and it is the only number that should decide the choice.
· 3 min read
Set a realistic rent budget with the 30% rule and the 40x-rent test, and learn why using net income instead of gross keeps you on safer ground.
· 16 min read
Ten interest-only years on a $300,000 loan at 6 percent cost $180,000 and repay nothing. When amortisation starts the payment jumps from $1,500.00 to $2,149.29 — 43.3 percent overnight — and the loan ends up $48,315.79 dearer than the repayment version.
· 15 min read
Thirty percent of gross income leaves $6,800 a month at one income and minus $200 at another. The rule is a fixed percentage applied to a budget whose other needs are not proportional to income — which is exactly why housing policy uses residual income instead.
· 4 min read
A practical method for freelancers and commission earners: baseline on your lowest month, run a buffer account, and pay yourself a steady salary.
· 2 min read
Learn how card APR becomes a daily periodic rate, why interest compounds daily, and how minimum payments can stretch a balance out for years.
· 2 min read
See how a fixed loan payment splits between principal and interest, how amortization shifts over time, and the formula behind the monthly number.
· 4 min read
The simple formula to turn an annual salary into an hourly rate, a worked example, and why US and European full-time norms give different results.
· 3 min read
Median net worth by age band, how to calculate assets minus liabilities, and why the median — not the average — is the fair yardstick to compare yourself to.
· 2 min read
Understand marginal vs. effective tax rates, how progressive brackets work, and why a raise never gets fully taxed away — with a clear worked example.
· 3 min read
Figure out a realistic car budget using the 20/4/10 rule, income limits, and total cost of ownership — not just the sticker price on the window.
· 4 min read
Set a freelance rate from your target salary, real billable hours and business costs — so you don't undercharge by treating a rate like a salaried wage.
· 13 min read
Half the monthly payment every fortnight is 26 half-payments a year — 13 monthly payments, not 12. On $300,000 at 6 percent it saves $74,436, of which $73,666 comes from the extra payment and only $771 from the fortnightly frequency itself.
· 13 min read
GRM is price divided by annual gross rent — a screening ratio that ignores vacancy, costs, financing and tax. Two properties at $300,000 with $25,000 of rent both score 12.0, and one yields 5.83 percent while the other yields 3.75.
· 15 min read
One point on a $300,000 loan costs $3,000 and saves $47.93 a month. The naive break-even is 63 months; discounted at 4 percent it is 71. And the number that decides it is not either of those — it is how long you keep the loan.