Can someone explain mortgage interest to me?
#2
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 *****. As far as calculating payments a very rough estimate is $100.00 per 10,000.00 that always keeps you safe.
BTW, I am not a pro at this *****. As far as calculating payments a very rough estimate is $100.00 per 10,000.00 that always keeps you safe.
#5
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.
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.
#8
Originally Posted by UniqueTII' date='Oct 24 2002, 10:11 AM
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.
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.
#9
#10
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.
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.