Misleading Information


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amortization.com Ltd.
Burlington, Ontario
CANADA

905-639-0374
905-407-7988

info@amortization.com

Amortization Pro for iPhone/iPad/iPod

Misleading Information

Below is a classic example, of smoke and mirrors, not to mention a misleading web advertisement . Let us investigate further into, .. "HOW IT WORKS - An Example".

(Screenshot 1)

Let us look at this claim a little closer. Not to be a nit picker but the monthly payment quoted is not very accurate, it should be $1,100.65 not $1,100.24 as can be seen immediately below.

(Screenshot 2)

The reference point is the total interest you would pay in this example, that is $246,233 (to the closest dollar) if you did nothing. The only way that this company can save you money by chopping 6 years off the amortization period (thus reducing it to 24 years) and keeping the monthly payments the same for a mortgage of $150,000 is to have the interest rate reduced to 7.2525% from 8% as you can see from below, by changing the amortization period to 24 years and then recalculating on the annual interest rate.

(Screenshot 3)

Your savings would be $79,248 ($246,233 - $166,986 = $79,247) not the $66,000 as claimed. What happened to the difference of $13,247? ($79,247-$66,000=$13,2478)

An amortization schedule, or a calculation like the one above, in advance, before signing anything, would certainly shed some light on this matter. BUYER BEWARE !!!

Amortization Schedules have been around since 450 BC, when Nehemiah the governor of Jerusalem reformed the mortgage usury laws.