All Questions
13
questions
6
votes
4
answers
4k
views
How exactly does a biweekly payment schedule on your mortgage reduce the amount of overall interest paid over the life of the loan?
Here is how a normal fixed-rate monthly amortization schedule is calculated:
First we determine the total monthly payment:
Payment = [P*(r / n)(1 + r / n)^nt] / [(1 + r / n)^n*t - 1]
where n = 12, P ...
- 161
0
votes
3
answers
129
views
Hypothetical Question About Mortgage and Yield [closed]
Making These Assumptions:
I have $1M, I want to buy a house which costs $1.5M.
I want to have a mortgage of $500K.
The interest rate on my mortgage is 2.5% annually.
Assuming I rent the house and ...
- 65
5
votes
4
answers
873
views
Is home equity worth taking out a mortgage when I have $67k student loans to pay?
Note: home equity isn't the only reason I'm thinking about buying. I'd like to have control over my own living environment, more space, not have to worry about annoying the apartment unit upstairs if ...
- 1,074
1
vote
2
answers
789
views
Compound Interest & Mortgages
Mortgages are compounded 2 times a year in Canada and 12 times a year in the USA. However, I read that mortgages are simple interest and not compound interest because you pay the interest for each ...
- 27
6
votes
3
answers
2k
views
Will having a secondary signee with bad credit on a mortgage raise or lower interest?
My girlfriend and I are purchasing a house. We were told that it would be better to have the mortgage solely in my name as the only account holder due to her credit score.
My question is, between ...
- 163
-6
votes
2
answers
1k
views
Why is there so much interest on home loans?
Search around the internet for current mortgage rates and play with some of the amortization calculators. You'll see that at the end of the payment schedule you will be paying almost an equal amount ...
- 121
2
votes
2
answers
896
views
Paying off a mortgage early
I am thinking about buying a property with a mortgage in the UK, living in it for 3 years, and then selling it. This is because at that point, I will probably be moving out of the city I am currently ...
- 601
3
votes
6
answers
7k
views
Why is the breakdown of a loan repayment into principal and interest of any importance?
Repaying a loan is a type of cash outflow. Why should I care which part of each payment goes towards the interest and which part towards the principal? "A loan is a loan", no?
I know that this ...
- 528
-4
votes
5
answers
999
views
Mortgage vs. Loan?
I understand the math behind how banks calculate the interest to principal ratio throughout the amortization period. I want to know why banks want you to pay as much interest as possible first? In a ...
- 123
2
votes
1
answer
2k
views
Should I pay extra towards my mortgage or HELOC?
My first mortgage has a balance of $147k with 4.75% fixed interest rate.
My home equity line of credit (HELOC) has a balance of $87k with prime minus 1.1%.
I've been making about $50 extra payment ...
- 61
1
vote
2
answers
302
views
APR without principal repayment?
I've been trying to find out about this own my own but can't seem to work it out via search engines, loan/mortgage websites and excel.
When I try to work out how much a loan costs, rates like APR ...
- 21
3
votes
3
answers
3k
views
Quick formula for calculating total interest in my head
Is there a rough, quick and dirty, formula that I can do in my head for calculating the total interest on a loan? Something like:
TotalInterest = Principal * (Yearly Interest% * Term In Years / 2);
...
- 133
13
votes
3
answers
4k
views
First time home hunters. Pay debt or save for down payment
tl;dr
We want to buy a house.
We've done all the pro's and con's of home ownership.
We have 1/2 a down payment and some highish loan payments
Would it be wiser to pay down the loans and go with a ...
- 285