I roughly calculated that $125,000 divided by 360 months would be $347.23 per month BEFORE interest, insurance, etc. I used an online mortgage calculator and was informed my monthly payment was over $974 per month! How is that possible even when including the 6% fixed interest rate, insurance, etc? When I search real estate websites, they have a payment calculator on the side that show my payments for a $125,000 house would be a reasonable $671 – $745 (depending on the local yearly taxes, value, etc). Why do the online calculators have such an exaggerated payment total? How can a payment of $347 before interest, etc end up being $974?
your monthly principle and interest on a $125,000 loan at 6% for 30 years is $745.71 with $635. going to interest and $120.71 to principle in the fist month slowly changing to more princplie then interest over time, the you add taxes, insurence, home owners ass if needed and mi if needed to that
what you figured is almost as if you had a 0% loan
You need to fully amortize the loan:
http://www.bretwhissel.net/amortization/amortize.html
References :
just multiply the number of thousands by 6…so 12.5 x 6 = $750 a month. INterest over 30 years really adds up.
References :
your monthly principle and interest on a $125,000 loan at 6% for 30 years is $745.71 with $635. going to interest and $120.71 to principle in the fist month slowly changing to more princplie then interest over time, the you add taxes, insurence, home owners ass if needed and mi if needed to that
what you figured is almost as if you had a 0% loan
References :
in the mortgage field for 16 years
The payments can be that high because these people are literally lending you over a hundred thousand dollars, and letting you pay it back over THIRTY years. If you can just pay the $125,000, straight up, there’s no problem with that.
References :
Well the only thing that I DO know is that I just got a mortgage of $125,000 exactly and my mortgage payments are $1050 a month with everything included (not utilities obv.) Hope that helps.
References :
The number would depend on what other factors are being considered by the calculators you used (such as taxes, insurance, etc). Use the following calculator from bank rate.com to calculate (strictly) the payments on your loan + interest.
http://www.bankrate.com/brm/mortgage-calculator.asp
Also make sure to calculate the actual loan amount, i.e. not the purchase price or do not forget to include any additional items that you may finance.
Additional info on what goes in to the calculation can be found at;
http://www.bankrate.com/brm/mortgage-calculator.asp
References :
http://www.fonerbooks.com/interest.htm
http://www.bankrate.com/brm/mortgage-calculator.asp