Will I get a mortgage from 6.5% to 200k … even though States mortgage calculator?

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I am paying 568k over 30 years … I pay only 200 if I make a few payments and then they all pay in cash? In other words, I only pay when capital in a year I pay off my loan or deciding that I am required to pay the balance of interest, although I have no more free loans?

2 Comments
  1. Reply
    theshadow01
    February 16, 2011 at 7:40 pm

    Some loans have stiff pre-payment penalties. Make sure that the loan you get has no such penalty. Depending on what you roll into your loan (property tax, homeowner’s insurance, closing costs, etc) you will likely pay close to your purchase price if the loan is paid off in a year.

  2. Reply
    Real Estate Guy
    February 16, 2011 at 8:13 pm

    Yes, you are correct. With a regular amort loan, when you make a payment each month, some goes to interest and some principal. If you want to pay off the loan in full, you will only pay the outstanding principle.

    For example, you borrow 200k. After 2 years, your balance is around 198k (est). If you want to pay it off in full, you would pay 198k.

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