What will be the monthly installment for a loan of 650,000 @ 8.75% interest pa as per diminishing rate of int?
Answer:
If your TOTAL LOAN AMOUNT (including closing costs and attorney fees) is $650,000 @ 8.75% and you pay this for a 360 month (30 Year fixed) with no ballon payment.
The monthly payment will be about $5113.55
You will have payed a total of $1, 840,878.00
You will have payed 183.212% Interest when you are done paying (assuming you never refinance again or add more debt)
You will have payed $1,190,878 in Interest alone.
I think the interest rate you've been offered sucks. If you can afford to pay on a 15 Year term rather than a 30, you'll get a higher payment BUT a lower interest rate.
Assuming you were offered a 8.75% for 15 years.
If you pay $6500 a month, you can pay the house off in only 15 years and save $672,000.
You'll have paid a total of $1169355.60 including interest and principal.
Ask yourself this.. Can you afford to pay $7000 a month on your house and then pay whatever debts you have every month?
If you're DEBT TO INCOME RATIO is higher that 50% - meaning you are spending more than half you're monthly income, then this choice is unwise and dangerous.
A typical Bank is going to analyze your debt to income ration very carefully before they approve this when it goes into underwriting.
ask your banker
$30,000
if you can get 650,000 loan, why are you asking us losers
You need to search for an amortization scheduler. Most mortgage companies have one on their website. Here's one:
http://www.calculators4mortgages.com/cal.
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