wever Wayne Gretzky Oilers Jersey  

Professional Surveyor Boards » In the News » wever Wayne Gretzky Oilers Jersey

Name Message
rxz123
Posts: 222

Joined: 2/7/2017
Topic  wever Wayne Gretzky Oilers Jersey       Flag »  Reply »
A friend of mine called to inform me he had gotten some great news in the mail. He received a letter from a lender in California informing him they would give him a $310 Zack Kassian Oilers Jersey ,000 mortgage and his monthly payment would only be $999! "Think of the house I could buy," he told me excitedly! "I know I could qualify to make a monthly payment for twice as much and if I sell my house which has a $200,000 equity and we use it for a down payment, I could get a million dollar house! Wow! What am I waiting for?"

His figures were only slightly off. If he had a $200,000 down payment and he could lock in a $1,998 monthly payment on a $620,000 borrowed amount, he could afford a property priced at $820,000. However Wayne Gretzky Oilers Jersey , since I was suspicious of the kind of mortgage he was talking about, I told him to bring his letter to me and we could figure out exactly what he could qualify for. Instead, he invited me to his house. I thought it was a good idea because he has a billiard table and it might be some consolation to him, that as I was putting his dream of living in a mansion on hold, he would be annihilating me at 8-ball.

I came to his house prepared. I found out that a $310,000 mortgage for 30 years with a $999 monthly payment is a 1% interest mortgage. Then, when I read the proposal he had received, it was as I had expected. What this letter was offering was a negative amortization mortgage.

I had to read some very small print but after I did, here's what I found out. Once you close on the $310 Ryan Smyth Oilers Jersey ,000 mortgage, you have up to three years in which they will accept a minimum monthly payment of only $999. During these three years, regardless of what you're paying, the mortgage is a 7% mortgage.

In order to amortize normally, or be paid off normally, a $310,000 mortgage at 7% for 30 years requires a monthly payment of $2,062.44. This $2,062.44 includes interest and principal. In the early stages of a negative amortization mortgage Ryan Nugent-Hopkins Oilers Jersey , no principal is paid. The entire payment goes toward paying the interest on the loan. The interest due on the first payment of this loan is $1,808.33. Since the payment will be $999, $809.33 ($1,808.33-$999) will be added to the principal. Since this mortgage will have a principal that is increasing instead of decreasing, it is what is known as a negative amortization mortgage.

With the terms of this mortgage, it would accumulate $32,316.76 more debt over 3 years, which when added to the $310,000 original mortgage Paul Coffey Oilers Jersey , totals $342,316.76 principal owed. When the negative amortization period of the mortgage ends, the mortgage becomes a regular mortgage. In this case, that happens after 3 years. Then, there is 27 years left to pay the $342,316.76 owed at 7 %. This would take a monthly payment of $2,354.51. A far cry from $999 a month!

  Wednesday, July 12, 2017 at 5:59:21 AM

Professional Surveyor Boards » In the News » wever Wayne Gretzky Oilers Jersey

 
» Reply to wever Wayne Gretzky Oilers Jersey Topic

In order to post a new message, you must first be logged into an account.