Calculating your monthly Payments

How to calculate your payment:

During the first year, the monthly principal and interest payment for a $100,000 loan is $370. In this example we are using $100,000.  You then need to drop the first three zeros i.e. $100,000 becomes 100.  3.7 times loan amount = 1st yr. monthly payment principal and interest.  In this case it is 3.7 x 100= $370. 
So, if the loan amount was $147,000, we end up with 147x 3.7= 540. 
If we use a loan amount of $95,000 we use 95 x 3.7= $ 352.

Each year the maximum amount the payment can  increase is 7.5%. 

The gradual 7.5% annual payment increases are shown below. Multiply the payment by 1.075 to increase it 7.5% each year.  This is an example of payments for a $100,000 loan.

  • 1st year monthly payments     $373

  • 2nd year monthly payments    $400

  • 3rd year monthly payments     $431

  • 4th year monthly payments      $463

  • 5th year monthly payments      $497

 

Here is example of savings versus a regular $200,000 loan for 30 years.

Numbers are rounded for illustration purposes.

 

 

 

Year

1.95% Monthly Payments

6.0% Monthly Payments

6.5% Monthly Payments

7.5% Monthly Payments

1

$740

$1,200

$1,264

$1,398

2

$795

$1,200

$1,264

$1,398

3

$855

$1,200

$1,264

$1,398

4

$919

$1,200

$1,264

$1,398

5

$988

$1,200

$1,264

$1,398

Total payments 5 yrs

$51,578

$72,000

$75,848

$83,905

 

 

- $51,578

- $51,578

-$51,578

5 Year Savings

 

$20,422

$24,269

$32,327

 

Please contact us to get your loan started today!  It is your money; don't you think you can put it to better use than your bank?

Call: 661-946-0338

or email us at: 

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