Math problem...help please..lol

[Kim]

Help!! I can't figure out why this finace company came out with the figure they did and was hoping someone here can figure this up 2 different ways for me and see what you come up with?! Please!!! ) We are purchasing a 2001 Indies home that is 2176 sq. ft.

Ok, here it is: We are taking a loan out for $32,800 @ 9.75% for 20 yrs. We are putting 10% down. What I need to know is how much will our payments be and how you got your amount.

Here is the other one. Same thing, loan for $32,800 but at 10.5% for 15 yrs. With 10% down. How much would our payments be this way and again, how you get this amount.

I keep doing it the way I know how and I don't come up with what they told me. Please let me know what you come up with...

Thanks,
Kim........who is pregnant and so stressed that I can't do the math....lol

[jgn]

You are financing $29,520
9.75 for 20yr = $280.00
9.75 for 15 yr = 312.72
Just went to a mortgage calculator like http://www.jeacle.ie/mortgage/ or use google and find mortgage calculator.
I do have a question, with 15yr rates below 5% why consider 9.75. At 9.75 for 20 your interest would be $37681 and at 5% $17236 plus your payment would be 194.82 vs $280.00. Is this a home only in a park?
Good luck and ask tons of questions.

[Kim]

I do have a question, with 15yr rates below 5% why consider 9.75. At 9.75 for 20 your interest would be $37681 and at 5% $17236 plus your payment would be 194.82 vs $280.00. Is this a home only in a park?
Good luck and ask tons of questions.

Ok, first off, not sure where you got the ((with 15 yr. rates below 5%)) The 15 yr rate was at 10.5% interest and the 20 yr. rates at 9.75%. They said our credit was very good and the interest rates were high because of it being USED and not NEW. This will be put on family land that is not in our name. This is NOT in a park.
Thanks for the help!!!
Kim

[rmurray]

See my other post...you might consider buying land with this home...much better long term investment...and payments would be no higher than home only on your family land...because of the much lower rate...

You can still go visit the family often..smile..

[Kim]

HA HA HA about visiting the family. Too funny! Actually we are the only ones that live on this land but it is in Father in Law's name. He hasn't deeded it over to us because we don't want to pay the land taxes, but it is 25 acres and we don't need or want anymore land than this! We never want to live close to anyone and out here we don't have a neighbor within a mile or so from us and we want to keep it that way! )

)
Kim

[jgn]

Kim:
What determines your interest rate is risk not new or used. I don't know where you are but most states have a farm tax on any land over xx acres and it is real cheap, like 10 acres taxes well under $1,000. You are paying higher interest because it is a home only and the lender considers this a high risk because it is personal property where real propety is little risk so the intrest is 1/2.
Current rates are 4.875% for 15, 5.25% for 20 and 5.375% for 30. The difference in interest would pay for the land and you would have an appreciating asset. Being on rented land is viewed much the same as a park because the home would need to be moved if sold and the value drops significantly. If you pay it off in 8-10 years you would have little value in the home. See if FIL would part with a couple of acres and he could keep the rest because in the ling run you are much better off on your own property.
Good luck amd keep smiling