payoff mortgage in 5 years

payoff mortgage in 5 years
In today's world, a mortgage is for anyone who wants to invest in real estate wants, or just a roof over your head. In general, to find out what a mortgage payment is about a specific property, a potential Buyers must contact a broker or bank to get a quote.

Through contact with one of them, the buyer risks harassment from a real estate agent who does not let go of a qualified buyer or a lender who needs to lend mortgage money to stay in business. Each buyer in his right mind is only one of the seller if he is ready, with full speed ahead toward a closing.

So what is a person who in the early stages of thinking buying a home do? As you know, what will the payment on a house, a seller asks $ 250,000 in the bank is advertising 30-year mortgage at 7%?

Until the end of this article you will be such a calculation in your head. They are bacteria, the answer to complicated home buying scenarios just as fast as you can find the conditions for the mortgage and the price of the house.

$ 66.53 per month

First, remember this: 10,000 U.S. Dollar borrowed for 30 years at 7% will be charged a monthly payment of $ 66.53. This is due to 100,000 U.S. dollars for 30 years at 7%, a monthly payment of $ 665.30. Also take note you can find out on a piece of paper with a pencil, $ 50,000 for 30 years at 7% is $ 332.65.

Knowing these figures, you will automatically know that $ 250,000 mortgage at 7% for 30 years, a payment of $ 665.30 (for 100,000 U.S. dollars) and another $ 665.30 (for the next U.S. $ 100,000 ) and $ 332.65 (for $ 50,000). This means that the payment will be $ 1,663.25, or very, very close. A mortgage calculator gives the answer is $ 1,663.26, but for a wild guess I take it.

A 6% or 8% mortgage

Of course, here, please, "" What happens if I have a mortgage with a lower interest rate? "" Well, in this case, remember this, 10,000 U.S. Dollar borrowed for 30 years at 6% costs the borrower $ 59.96 per month. This represents a $ 1,000,000 mortgage for 30 years at 6% is 100 times $ 59.96 or a monthly payment of $ 5,996.00. Well, sure, that was easy. Everything we had to do was ADD 2 zeros!

Okay, what if the interest rate of 8%? Here, a 30-year mortgage for $ 10,000 $ 73.38 per month. So a $ 300,000 mortgage is at a price of 30-times, or $ 2,201.40 per month.

How about a 7 1 / 4% Mortgage?

In reality, most times interest rates will not be exactly 6 or 7, or 8%. Even if this is the case, you do not need a mortgage calculator. If you have a 30-year-$ 260,000 mortgage at 7 1 / 4%, for example, and you want to know what the monthly payment will be, here is what you are doing. Are you ready? Guess!

That's right! Just guess! You know, 7% is $ 66.53 per 10,000 U.S. dollars per month and 8% is $ 73.38 per $ 10,000 per month. You know, 7 1 / 4 is somewhere on the bottom side 7 a.m. to 8 p.m., so take a guess how much 7 1 / 4% of the cost per $ 10,000 per month. My guess would be maybe $ 68.50?

I'm going with this. So, since it is a $ 260,000 mortgage, we try to pay for the figure, we multiply 26 (260,000 / 10,000) X $ 68.50. The answer is: $ 1781st

If I $ 260,000 in 7 1 / 4% for 30 years by a mortgage payment calculator the answer is $ 1,773.66. So, our response was not exactly right, but it was pretty close.

In a case like this, although we expect an answer, the $ 20 - $ 30 off, who cares? Before the real mortgage payment is the cost of homeowners insurance and taxes will be charged anyway. So, the best anyone can do at this point is guess.

There you have it. Well, you're a human-machine! While we used 30-year mortgages, and today, the interest paid by 6% to 8%, you can find mortgage payments in the head, or perhaps with a little help from a calculator. Congratulations!

Ed Lathrop is a successful real estate investor. He has a website where you can use a mortgage payment table showing monthly payments for hundreds of different combinations of rates and amounts borrowed. Get your free issue: House Payment Chart. Also, find out how to make your repayment plan and use it to much to save money: free Amortization Schedule. These pages are not owned by a lender, so that nobody bothers you for your visit!