Believe it or not we can actually answer that question using information from the President's tax returns, which he has released to the public! Combined with information about his mortgage, which the Washington Post has been kind enough to publish, we estimate that as of this month, April 2012, President Obama still owes approximately $806,000 on his residence at 5046 South Greenwood Avenue in Kenwood, Illinois.
Here's how we know. Since President Obama closed on the transaction to purchase his Chicago residence in June 2005, we estimated that his first payment would be in August 2005. Taking the original amount of the President's mortgage (approximately $1.32 million) along with his interest rate (5.625%), we used Hugh Chou's mortgage calculator to generate a full amortization schedule for the President's 30 year mortgage, which would apply provided that the President has never acted to refinance his mortgage.
President Obama's monthly mortgage payment on his Chicago residence is over $7,598. This combined total of just principal and interest adds up to $91,184 per year.
We then worked out what remaining principal would coincide with having made $47,564 in mortgage interest payments over a 12 month period of time, as he did for the 2011 tax year under the terms we know of his mortgage. That amount turns out to be almost $821,000, which represents the amount that the President still owed on his house in Chicago as of the end of 2011.
Looking ahead by four additional months down the amortization schedule to bring us up to this point in time, April 2012, would put the amount of principal still remaining on the President's mortgage at approximately $806,000. And that's how we arrived at this figure!
Political Calculations is a site that develops, applies and presents both established and cutting edge theory to the topics of investing, business and economics.
Be the first to read Political Calculation's column. Sign up today and receive Townhall.com delivered each morning to your inbox.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 29th, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 28th, 2014 | John Ransom