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?! PWEEESEEEEeeeeeeeee... ) 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

[Kim]

SORRY!! It said it didn't go through so I resent it twice! Sorry for the repeats!!

)
Kim

[rmurray]

Here we go...

32800 loan amount @ 9.75 for 240 payments= $311.12
If you meant the 10% comes off of the $32800..then the laon amount is $29520 and the payment would be $280.01

32800 loan @ 10.5 for 180 payments = $362.88
$29520 @ 10.5% for 180 months = $326.32...

I use a simple loan calculator that can be found at

http://www.decisionaide.com/mpcalculato ... icCalc.asp

Now my questions...What did they say the payments are????

Second..Why in the world would you consider a higher rate on the shorter loan...If anything shorter loans are always lower...you could take the longer 32800 loan at 9.75% above and pay $347.48/mo and you would be finished in 180 months..saving $15.40/mo...or $ 2772 over the life of the loan...

You still have a few years to practice your math before your baby needs mom's help...

[JohnnyJ]

At those interest rates you are getting Sc---ed, and not even getting kissed. Shop
around, you should be able to get much lower rates in today's market. I got a
8.5% loan 3 years ago through a bank.

good luck

[sabrina]

dear kim,
don't worry! use a tad of fabreeze and Goop handcleaner in the wash and ALL the smell and stains go away! honest....i've tested it on some really BAD stuff......

by the way, us gals don't have to worry about not being brilliant at math...we have much more IMPORTANT things to do like create a baby (that is with God's help!).

i agree about the interest rate. that seems a bit stiff but maybe you, like me, have had some tough times and your credit is not sterling. if so, i can offer some advice from the other side of things. my loan, if it were conventional, would be at 4.76%. so your interest rates are a bit steep it seems to me.

let us know if we can help!!
god bless,
sabrina

[Kim]

Well, they said my payments would be $275.00 on the 20 yr. loan @ 9.75% interest. I just didn't come up with what they have and they have the total cost being $66,000 in the end. Yes, $275 x 240 months= $66,000 but how they got to those figures with what I am taking loan out for is beyond me and when she tried to explain it, she couldn't. hummmm

Thanks for everything!!!
Kim

Oh yeah...we really weren't considering the higher rate at less years but another lending company tried to talk us into that today and we wanted to know the difference. We are set on 20 yrs. and just doubling up on payments when we can and paying for it in 10 to 12 yrs. at the longest! We have been told our credit rating is good (platninum rating??) and that right now rates were anywhere from 9.5% to 10.5% for used doublewides. Is this about right or should we find somewhere else? We have been approved through Triad and through another lender. Triad is the 9.75% and the other is 10.5%. They are getting back to me about lowering interest even more, but not sure what the lowest will be. What is average right now and who else is out there that will finance a doublewide?

[Kim]

We have excellent credit and that shouldn't be a problem. We haven't found many places that will even do a mobile home loan!! Our bank that we have done business with for 18 yrs. told us that they will not finance mobile homes anymore and that we would have to take a personal loan out to pay for it! They wanted 7% interest and us to put up collateral and all! Not to mention they only wanted to go 7 yrs. and work it up as a car loan!! They were NUTS! We are pulling everything out of that bank as soon as we are done with this purchase!! The lender companies are telling us that purchasing a USED doublewide has a high interest rate compared to a NEW one or to a non-mobile home house!

Thanks,
Kim..........who can do the math, but I just kept coming up with different figures than they did!! Glad others here came up with what I did so I know I am not losing my mind!! Maybe it is just hidden charges?? who knows.........

[rmurray]

There are 2 kinds of finance...

Home only...just like car finance but longer...This is what you have with Triad...By the way..Chase bank is usually lower rates than Triad...but not always..This finance is quick..often pushed by dealers because it gets them their money the next day after you sign the note...no delays...if your are not happy..oh well..they got theirs..This kind of fiance is always higher than the other offered in the industry...But if you do not own the land..or it is in a park...this is all you can get...

Mortgage finance for those with this great credit...for 15 years would be..4.25% fixed rate..with about $2000 in closing costs...

that would put your payment at about $237.12....if you fiance the closing costs...that is $19,800 in saving on interest from the above loan..


By the way...if you "doubled up" the Triad payments you would pay off the home in 5 years 10 months...for a savings of $28,000 in interest...WOW

Triad sells all their notes to SouthTrust Bank in the SE...You might go to your local SouthTrust branch and see what they offer..

One thing for sure...take advantage of your good credit...banks all want your business...