Interest Calculation on Loan Payment?

Posted by admin on June 30, 2010 2 comments

Amount Financed: $10,036.55
Regular Payment: $324.65
Term: 60 months
APR: 29.99%

April 30th Amount paid $324.65
Applied to interest $207.77
Applied to balance $116.88

April 2nd Amount paid $324.65
Applied to interest $254.26
Applied to balance $70.39

MY QUESTION IS: If my loan rate is 29.9% why is so much of my monthly payment going to interest? And why would it be different every time I make a payment?

I would just call my branch by its closed until Monday.

29.9% of $10,036.55 is approximately $3,000, so approximately $3,000 per year (approximately $250 per month) should be applied to interest, at least at first. The reason that it is different each time are (1) there was a different amount of time, for example, April 2-30 is only 28 days, not a month, so the interest is less than it would be for a full month, (2) because some of the money went to the balance, the amount of unpaid balance became less, so the interest is went down. The interest each time is 29.9% of the amount of balance that has not yet been paid, times the fraction of the year (for example, 28 days is 28/365 of a year) for which you are paying.

how do banks calculate loan interest?

Posted by admin on June 30, 2010 1 comment

if i take loan of 100000/- at 8.5% what would be my EMI in diminishing method.

I think u should consult to a bank employee.

How do you calculate time left on loan. having paid extra principal?

Posted by admin on June 30, 2010 2 comments

I sent an extra 20,000 dollars to the principal on my home loan. how can I calculate the duration of my loan.

Bankrate.com has your answer
This site is trustworthy – has been around for a decade.

http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx

Don’t forget to scroll down to see your full answer
If that doesn’t help.
Google "mortgage amortization schedule calculator"
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Can someone do a modification and have their mortgage payment decreased by 850 dollars?

Posted by admin on June 30, 2010 8 comments

I know of someone who had a mortgage payment of 1500 dollars and went through some type of program to get a lower interest rate. Now their mortgage is 650 dollars.

Yes there are several government loan modifications programs out to help you lower your payment. FHA, HAFA and HASP just to name a few. Click the link below to learn how these programs work and to find one that meets your needs.

How do you reduce my mortgage payments, or stop them all together?

Posted by admin on June 30, 2010 4 comments

A family friend has bought his house for around 130,000 around 10 years ago. The current home value is 44,000 and he has to pay around $900 in mortgage payments. Is there any way to lower, or even stop, the payments altogether? What is the best solution for this dilemma?

the best thing he can do if he is having problems making his payments is to call loss mitigation at his mortgage company and apply for hardship assistance. they may be able to qualify him for a modification depending on his financial situation. a modification will bring his act current if past due, lower his rate and possibly extend the loan term to lower the pmt as much as possible. if this is not a option with his situation he can list the home for sale and have the lender consider a possible short sale which means he lists the home for sale at current market value and the lender reviews the offer once one is made to see if they can accept the short payoff in lieu of foreclosure. this affects the credit quite a bit it is reported as a 9 on credit which will affect the score as much as foreclosure but will not prevent him from getting another mortgage for as long as foreclosure will probably 2yrs vs 3-5 in foreclosure. he will also get a 1099a form in the mail for the difference the mtg company writes off in the short sale he needs to find out from his accountant how this will affect him personally it could put people in a bigger bind. Best bet if he can afford a reduced pmt is to apply for a modification its kinda like a refinance but its done free with no closing cost. appraised value is not a factor usually and credit don’t matter. its all based on current monthly housing expenses and gross and net monthly income. Good Luck

In two years time have likely is it I can get a mortgage? UK?

Posted by admin on June 28, 2010 3 comments

Im 22 full time job, Support worker. I get £250 a week. My partner is 25 a lorry driver and he picks up £400 a week. We have been together for 5 years. Will they take us seriously? Im hoping for £150,000 mortgage. What would be a good amount to have in your bank when applying?

Use the calculator below to give you an idea.

If your partner earns £20,500 a year and you earn £13k a year, and if you can put down a deposit of £30k i.e. 20% (not unrealistic these days), and if you don’t owe anybody anything so you have no other debts that have to come out of your earnings, then you might be able to borrow between 100 and 140k. But it depends on your individual circumstances and some lenders might want bigger deposits, while others may want to charge you higher interest. It really does depend on your own situation and you have to speak to a mortgage adviser with a particular property in mind that they could quote you on.

Try to get rid of any outstanding debts and build up a good deposit though.

Avoiding Hard Money Mortgage Loans – Anyone?

Posted by admin on June 28, 2010 1 comment

I wanted to buy a new house but the bank won’t give me the loan to buy it. Hard money mortgage loans are going to be to hard to pay off and I’m just going to get deeper into debt. I’ve never been late on repaying loans and I have a good credit, but I can’t find who can give me mortgage loan. Does anybody knows where I can get a mortgage loan that’s easy to manage?

Thanks,

Steven

I had a friend who had bad credit and she had a very hard time getting a loan, but I’m surprised you did not get a loan yet. She eventually got her loan from a company called Alliance Portfolio and I would suggest giving it a try. They claim to give loans that other banks won’t. They have nearly 20 years experience working with people with bad credit, so I’m sure they can arrange a loan for your house. Good luck on the house

Mary

How can I find out if my town qualifies as a "high-cost" area for "conforming jumbo" interest rates?

Posted by admin on June 28, 2010 3 comments

I want to refinance a house but it’s not worth it unless I can get a "conforming jumbo" mortgage instead of a "jumbo". Where can I find out if my area qualifies? Is there a published set of maps, or zip code information? This seems like such an obvious question, yet several searches have turned up nothing, almost as if this is embargoed information of some sort.

High cost areas are listed mostly by FHA standards as to what the maximum they will lend in a area based on the high and low cost of homes in any one area.

To find out if you reside in a high cost area you should google high mortgage areas. This will bring you to a site that will guide you to a site by adding your zip code which will indicate if you are in a high cost area or not.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

I need help to write a letter of explanation of negative credit for a mortgage application.?

Posted by admin on June 28, 2010 2 comments

We are applying for a mortgage and we need to explain negative items in my husbands credit report and have been told to make sure the reason "isn’t our fault". What are acceptable reasons that can’t be proved to be untrue? The real reason is that things just got away from us, but that’s not going to help us.

So you are going to lie in order to get a mortgage?

Is your home mortgage information open to public record so that a stranger can go look it up?

Posted by admin on June 28, 2010 5 comments

I recently had an issue with my uncle, who happened to know everything there was to know about my mortgage on my home. How is this possible? Is this information public record, and if so, why?

Once the lender records the note against the property it became public info to place all others on notice that the land in question has an encumbrance upon it

The name of the lender and the amount is public info within the county tax records