56. How Interest Rates Move Markets - What Traders Know

[TENNISCHAMP98]

Dave, great job !

[Thorgal99]

Thanks. Great video.

Question on your numerical example: 6% of 500000 give me 2500$ per month (500000*6%/12). How do you get 2998$?

Cheers

[InformedTrades]

Hi Thorgal99, Thanks for the comment am glad you like the video. When you make a mortgage payment part of that payment goes to covering the interest that you have caculated below. There is a second component however which goes towards paying back the principal of the loan as well which is where the difference comes from. Because the formula for this is fairly complicated I simply used a free mortgage calculator which you can find by searching that term in google. Best Regards, Dave

[314159265352]

Nice, simple explanation.

[InformedTrades]

thanks for the comment am glad you liked it. Best Regards,

Dave

[atlas10]

"A+, more clearly than this, i don't think so"

-Thank You Dave!!!!!!!!!

[InformedTrades]

nice but isn't the teacher supposed to be the one giving out the grades! just kidding thanks for the comments much appreciated. Best Regards, Dave

[AirelonTrading]

Great video. 5/5. Very clear and easy to follow. More was in this videos 5:56 minutes - than most poor kids ever receive in their schooling.

[InformedTrades]

much appreciated. Best Regards, Dave