Mathematically, keeping it simple, say you have a $100k loan at 3.5%  for one year.

Mathematically, you take the expected interest rate and divide it by 72 to get the number of years for your investment to double.

It was introduced into the underwriting process when computerized underwriting software can on scene in the 1980s.You're right - was looking at the date it was invented rather than implemented.Given that it's a mathematical risk indicator it's interesting that an engineer and a mathemetician rather than actuaries put it together.

But also mathematically it just doesn't make sense to me.

We can accept non accredited investors, so our investor pool is significantly larger.Hi ChrisI totally agree with everything you've said here and I think you make some great points about the market etc.My only point was that I think that the statement that one must have an annual return equal to or greater than the rate of inflation in order to beat inflation is not necessarily mathematically correct.

Originally posted by Fred S:this thread is awesomeI agree Fred.With the exception of the comment that stated that there was a lot of bad information posted, this thread is fun and quite valuable for all reeaders.There is only difference of opinion and strategies, not bad info here.Lance posting the mathematics is helping to compare each story more accurately and fairly.

The Mathematics (Or as someone else on here put, the hunt)As an investor I love hunting for the right numbers that make, what some may see as dud or dump property, seem like a pile of cash sitting neatly in a suitcase with my name over it and a chocolate mint in the middle!

They're doing it basically mathematically for all the properties in the county for the assessment year, so it doesn't accurately reflect differences between individual properties.Sites like Zillow are doing a similar type of "big data" analysis of sales data to determine what an individual property might be worth. 

It went back to the software engineer, who without malice, being innocent, having applied all his knowledge to be true, applied it, by simple error in the application of and understanding a mathematical theory, was liable.

I don't have a mathematical debt to income ratio formula that I follow so I just apply so level of common since and personal finance.I wouldn't get so hung up in her past debt but I would pay close attention to what the past 3 years looked like.