I am planning to buy a house to avoid paying high rent and will take a mothly repayment mortgage with minimal deposit.As I know,the for first few years,the monthly installments are composed of mainly interest and small part of capital repayment(80-20 ratio).That means for first few years I will be paying interest more and will have very low equity in house.Now during that period if I want to sell house,am I going to loose money considering following:
A.The property price remains almost same.The property does not get appreciated in 2 years.
B.My Income remains same.
Example:
At the time of buying:
Property Value: 100,000
Total to be returned: 150,000 (50,000 is Int)
Monthly Installment: 1000 (800 Int,200 Cap repay)
After 2 years:
Property Value: 100,000
Capital Repaid: 4,800 (200*24), Interest Paid: 19,200
Money Paid: 19,200 + 4,800 = 24,000
Now if I sell the house will I get 24,000 as part of selling (after paying off everything to the lender) or just 4,800.
2007-06-20
22:26:14
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2 answers
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asked by
vikas_iaggarwal
2