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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: anializer who wrote (37143)	3/29/2010 9:55:02 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78710

in general the 3% fee is for a 6 month loan, so annualized it comes to 6% up on the front end of the loan which makes it near 7% annualized Wrong. I thought so too, but if you do the math, the percentage is much lower. Hint: although you pay 3% on the front, you don't pay almost anything during the 6 months you carry the loan with a balloon payment at the end. This changes APR quite a lot. One of the non-intuitive math things. You can check it out by plugging values into: bankrate.com Don't forget that the loan amortization is very high (something like >5 year amortization).