I know that an 8.5% mortgage will actually cost you ~250% of the loan amount, but can someone give me the formula for how payments and junk are figured out?

The 8.5% is an Annual percentage rate, so you pay 8.5% of the balance yearly, but it compounds daily so your balance changes everyday therefor the amount changes daily, if that makes sense. So you pay far more the 8.5% on the life of the loan, because you pay 8.5% yearly on the balance, you pay less interest every year.



BTW, I am not a pro at this shite. As far as calculating payments a very rough estimate is $100.00 per 10,000.00 that always keeps you safe.

I think I lost you on that one. Sorry.



So if the loan is $10,000, then you pay $850 of the principle the first year?

No interest rate isn't principle, you would pay somewhere around $850.00 in interest in the first year.

Ohhhhhh....jeez I'm stupid.

Wait...no...I was just confused...lol.



Now I have to make an Excel sheet to figure all of this out for me.



"so you pay 8.5% of the balance yearly" is what got me...you meant you pay that in interest.

There are some decent mortgage calculaters online, you just gotta hunt down one of them. Try a bank website or something.

I need one I can save the information on, so I'm using Excel. I think I've got the idea now...thanks!

Yea that is what I meant.

try this



http://www.arachnoid.com/lutusp/finance.html

I guess you got your question answered

I know on my mortgage, for $245,000 paid back over 30 years at 7% the montly payment is about $1200 or so, so you pay them back about $432,000 for that loan.

Then factor in some insurance: flood,home owners,and loan insurance and the real biggie on Long Island: property taxes for a grand total of $2050.