Posted by brad on April 04, 2002 at 08:31:44:
just my two cents…without interest you have less control…what i mean is with interest you have a set amount of time that you are loaning someone money,selling them a home, what ever…without it the pressure is not there to get them to make on time payments unless there is a late fee. and remember the value of money. no mater how much profit you get if the deal streaches over time inflation eats the profit. also it doesn’t seem like as much and is easier to sell a place a grand down and 5 more at ten percent than it is to sell the same place for a grand down and 10 over the same period. it just sounds better and is more attractive to the buyer. my morgage is for 84000. payed over 30 years its 220something. do you think that i would have purchassed at 220 with no interest even though that is the same thing. not a chance. interest also gives the buyer a chance to get ahead and profit/save by paying early.