calculation?

Question

I wanted to borrow 2,50,000 intrest only loan for 30 years fixed
how do I calulate the monthly payment
any i can help me

Answer 1

interest only loans are not fixed. the rate will fluxuate from month to month

Answer 2

Just take $250,000 and multiply it by the interest rate and then divide that by 12 and you will have your monthly payment. You need to know the annual interest rate though. Example: 250000 times .06 =15000 divided by 12 = $1250 per month. I suppose you understand that at the end of 30 years you will still owe $250,000 because the loan was interest only. You need to have an amortized loan to pay off the loan. If you borrowed $250000 at 6 % amortized over 30 years your monthly payment would be $1500. Then at the end of 30 years the loan would be paid off.

Answer 3

Depends on what your middle credit score is - and what a Lender offers you in interest rate. Here are some calculations.

250,000 @ 6.50 rate = 1354.14 vs fixed = 1,580.17

250,000 @ 7.00 rate = 1,458.33 vs fixed = 1,663.26

250,000 @ 7.50 rate = 1,562.50 vs fixed = 1,748.04

250,000 @ 8.00 rate = 1,666.67 vs fixed = 1,834.41


You may do a payment option - where you get to choose your payment, from 1-3 percent (but this can result in a neg. am, if you choose this one all the time), other payment options are interest only, 15 yr and 30 yr options. It is a good plan if a person is self-employed and money is tight some.

Talk with a mortgage broker, why talk with a broker? A broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.