Megan moved. The new blog is better. Even though (perhaps because?) you can't comment on it. Also, someone gave us a jar of cherries in brandy and they're great. And almost gone. And it is too hot.
Also, I'll stop with this eventually, but I've been stuck on a question Jon G asked over a year ago, about whether I was ignoring the mortgage tax credit for a reason or just because.
I was ignoring it because I didn't understand it, and I didn't really understand how to compute interest paid on a loan. That whole part about how, with each payment, you pay a little less interest and a little more principal. The interwebs are full of people who can explain to you how to derive an equation. You don't need me for that. Suffice to say that you are trying to spread your payments out over some number of years, so that when you get to the end of your some number of years (thirty, probably) you've paid off the whole loan as well the interest accrued on the loan while you held it. These same inter web tubes are full of calculators: punch in some details (term, APR and principal) get back a table of interest and principal payments over time.
What I couldn't seem to find was any sort of explanation of how to compute this for myself. I don't mean how to derive the equation, I mean how, without deriving an equation, to spit out a table of payments over time at different rates. As it turns out, OpenOffice secretly has a handful of financial functions available to us. Notably: PPMT, which takes your interest rate, loan term and principle and returns the capital repaid in a period for a fixed rate loan. If you're trying to understand the mortgage tax deduction, you need to know how much of what you're paying out this year is interest, vs capital. Only the interest is deductible. Alternatively, IPMT, returns the interest paid in some period. As long as we're on the subject you shouldn't be surprised to learn that PMT will calculate your payments for you. Magically, IPMT and PPMT add up to PMT, month after month. No messy math!
View Lately. Also. (about money again. and mortgages.)