Hi
I am trying to understand how my mortagage/interest rate is all calculated.
We purchased our home though an auction, and its owner financed us. Its a little confusing.
Anyways, the purchase price was 34,000 w/10% interest 1000.00 down and 375.00 per month on ballon note for 5 years. At the end of the 5 years we wil have 28,000 paid off. And will either have to refi or pay off the remainder or if the owner wants to refin.
Im not understanding how the interest is calculated. Is it 10% of each payment we make of 375.00? Or is it 10% of the overall loan amount of 34,000. Interest and all will be approx 50,000.
Currently it has been exactly 24 months since we started making our payments, we have made them on time, so Im certain we will get a lower rate. The amortization shows that we have only paid off a little over 3 thousand however when I calculate Im coming up with different figures.
2007-11-19
05:18:51
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6 answers
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asked by
thecrew74
1
in
Renting & Real Estate