what will be the monthly installment for a loan of 650,000 @ 8.75% interest pa as per diminishing rate of int?

Answer 1

If your TOTAL LOAN AMOUNT (including closing costs and attorney fees) is $650,000 @ 8.75% and you pay this for a 360 month (30 Year fixed) with no ballon payment...


The monthly payment will be about $5113.55
You will have payed a total of $1, 840,878.00
You will have payed 183.212% Interest when you are done paying (assuming you never refinance again or add more debt)
You will have payed $1,190,878 in Interest alone.


I think the interest rate you've been offered sucks. If you can afford to pay on a 15 Year term rather than a 30, you'll get a higher payment BUT a lower interest rate.

Assuming you were offered a 8.75% for 15 years...
If you pay $6500 a month, you can pay the house off in only 15 years and save $672,000.
You'll have paid a total of $1169355.60 including interest and principal.


Ask yourself this.... Can you afford to pay $7000 a month on your house and then pay whatever debts you have every month?
If you're DEBT TO INCOME RATIO is higher that 50% - meaning you are spending more than half you're monthly income, then this choice is unwise and dangerous.

A typical Bank is going to analyze your debt to income ration very carefully before they approve this when it goes into underwriting.

Answer 2

You need to search for an amortization scheduler. Most mortgage companies have one on their website. Here's one:

http://www.calculators4mortgages.com/Calculators/Amortization-Schedule/amortization_schedule.html

Answer 3

if you can get 650,000 loan, why are you asking us losers

Answer 4

ask your banker

Answer 5

$30,000