Actually, not true. The sweet spot is around 25% of the principal paid off, that is when the loan is the most profitable. Banks would like people to pay down their mortgage for around 7 years, then switch to interest only. Then the cost of capital vs return on assets would be at optimum profitability.
Incorrect. Paying down any of the principal reduces the interest the bank receives every month, and hence reduces their profit. In fact the bank would prefer if you actually increase the principal by borrowing further against any increase in the value of the asset. The bigger the outstanding principal, the more money the bank makes.
While 8.7 million jobs have been regained since the 2008 recession, they are paying much less, by an average of 23 percent, according to a report released Monday by the United States Conference of Mayors.
The report comes as debate continues about income inequality in the United States. "While the economy is picking up steam, income inequality and wage gaps are an alarming trend that must be addressed," said Conference of Mayors President Kevin Johnson, the mayor of Sacramento, Calif., in a news release.
"We cannot put our heads in the sand on these issues. "The annual wage in sectors where jobs were lost, particularly in manufacturing and construction, during the recession was $61,637, but the average wage of new jobs through the second quarter of 2014 is $47,131, the report shows. It represents a loss of $93 billion in wages, according to the report. (Go below to see the full report. ) http://www.cleveland.com/business/index.ssf/2014/08/wages_in_us_down_23_percent_si.html
Incorrect. Paying down any of the principal reduces the interest the bank receives every month, and hence reduces their profit. In fact the bank would prefer if you actually increase the principal by borrowing further against any increase in the value of the asset. The bigger the outstanding principal, the more money the bank makes.
You work for a bank do you?
------------------------------ " ... which is that all-too-familiar dynamic in Irish life where people tell lies, cover them up and create all sorts of collateral damage, sometimes spread out over decades, and never take responsibility." - Alan Glynn
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