All Forum Posts by: Jody Sims

I would propose paying 50% toward principle and 50% toward interest from the very first payment, or something closer to 50%, at least. In other words, for a $1000 mortgage payment, $500 goes to principle, $500 to interest. If you are reducing the amount of principle outstanding faster, there would be less interest to pay over the life of the loan. By forcing borrowers to pay practically all interest near the beginning of the loan, the amount repaid is far higher than it needs to be. Doing it my way means the principle is reduced faster without having to pay anything over the standard monthly payment. The way it is now, you have to pay a regular payment that is nearly all interest PLUS paying extra toward the principle. That is a far less feasible method for most who are buying a home today unless their down payments were much higher than usual, making their monthly standard payment very low.

I doubt anyone has questioned this in the forum before. I couldn't find the answer, so I'll pose it here.

How did society allow mortgage companies to evolve a strategy whereby mortgages all have front-loaded interest payments? Wouldn't having a balanced approach allow the loan to cost considerably less over the life of the loan, and possibly shorten the life of the loan as well?

I'm not saying I don't understand that that's just the way it is. I do. That doesn't mean I have to like it or wouldn't like to see how it's always been done changed.

For a couple of weeks now, I have had this idea stewing in my head. I am totally ignorant, in many ways actually, but specifically regarding how much it will cost to develop my idea into a working business.

I want to eventually build 3-story apartment buildings for a new complex in an area that is not only nearly saturated in terms of occupancy, but in which I know, without any question, property management companies are creating my customer base daily. At this time, my potential customer base is around 10,000. Many of those will own their own homes, but my strong suspicion is there are at least 5% of that number who would need to rent an apartment without the risk of wasting application fees due to a particular genre of felony from their past. The eventual goal for this complex would be at least 240 units, some 1-br and others 2-br, and few 3-br. However, I would start small -- perhaps 3 12-unit buildings.

I know the value this project would have to the state, the residents, the local community, to law enforcement, community supervision and, yes, to myself. What I don't have the slightest clue about is where to begin looking for ways to fund the project. I am by no means rich, perhaps I never will be. But, I know the need exists and I want to fill that need. It's more important for this project to succeed than I can tell you.

I know any investor is going to want to see detailed business plans and drawings for the project's design, but I certainly can't afford to hire an architect to draw up a layout.

In short, I am in the same position as a man who needs badly to relieve himself and has no pot to catch the stream. :(

I don't even know how much to divulge about my dream because of the possibility I will end up becoming a competitor with someone I told about it.