To the real estate financing figuring people here

[FarmboyBill]

What would be the monthly payment on 125.000 at 6% interest at 30 yrs??

[DAVID In Wisconsin]

$749.44

[BamaNana]

Here's a good place to play around at
http://www.bankrate.com/brm/mortgage-calculator.asp

[Forty Acres]

That 30 year loan will cost you $144,797 in interest. Add in the $125k principal and the total cost of the loan is $269,797.

Cut it to a 15 year note and @ 6.0%, the interest will be $64,868. Total cost of the loan will be $189,868. But the monthly payment will increase to $1054.82.

The shorter note is advisable if you can swing it.

[nathan104]

Just make sure you figure in your monthly tax and homeowners insurance with your mortgage payment.

[Wolf mom]

Please - never take a 15 year note when you can take a 30 year note.

WHY? Make a regular payment & a principal only payment. That'll shorten your note just the same as making a larger 15 year payment, also reducing the interest. If you ever get into a financial bind, you can make your regular, smaller payment and not get financially hurt.

You just have to make sure you do it!

[KindredSpirit]

Originally Posted by nathan104

Just make sure you figure in your monthly tax and homeowners insurance with your mortgage payment.

and PMI if you are putting down less than 20%

[Silvercreek Farmer]

Originally Posted by Wolf mom

Please - never take a 15 year note when you can take a 30 year note.

WHY? Make a regular payment & a principal only payment. That'll shorten your note just the same as making a larger 15 year payment, also reducing the interest. If you ever get into a financial bind, you can make your regular, smaller payment and not get financially hurt.

You just have to make sure you do it!

Not only that, but rates are so low right now that if you can fix your 30 year mortgage at 5.5 or so, you should probably should invest excess cash instead of paying down your mortgage, it is not too difficult to beat 5.5 percent over a 30 year time period. This also gives you liquidity in case of an emergency, where as if you pay your loan down, you may not be able to draw out your equity in a pinch...

[Wilbur]

Originally Posted by Wolf mom

Please - never take a 15 year note when you can take a 30 year note.

WHY? Make a regular payment & a principal only payment. That'll shorten your note just the same as making a larger 15 year payment, also reducing the interest. If you ever get into a financial bind, you can make your regular, smaller payment and not get financially hurt.

You just have to make sure you do it!

COMPLETELY AGREE with this approach. You can pay it off JUST as fast as the 15 year note but YOU have the flexibility not the bank.

[coryy]

be careful though! while that was good standard advice 10 years ago, our most recent refi would up our interest rate to something HORRIBLE if we add ANY principal-only payments---and keep it there for the rest of the life of the loan. READ YOUR FINE PRINT! (i can't remember offhand, but it was astronomical. i'd rather not dig it up and be reminded!)

[Silvercreek Farmer]

Originally Posted by coryy

be careful though! while that was good standard advice 10 years ago, our most recent refi would up our interest rate to something HORRIBLE if we add ANY principal-only payments---and keep it there for the rest of the life of the loan. READ YOUR FINE PRINT! (i can't remember offhand, but it was astronomical. i'd rather not dig it up and be reminded!)

Never heard of that before...