Interest rates/APR (mortgages)? - fixed mortgage comparison
if you are) the interest on the mortgage (fixed rate for 2 years, I saw that most offer an initial offer in order to monitor the rate and total cost for the comparison.
An example is;
The first offer - 5.19%
still included in the price - 7.44% variable
Total cost for comparison - 7.4% APR
Can someone explain what the jargon? What is the interest rate on the loan? April is the fare? I am aware that the annual report is the APR, but it would pay interest rates of 5% for the first 2 years, then the higher rate after that?
Thursday, January 21, 2010
Fixed Mortgage Comparison Interest Rates/APR (mortgages)?
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4 comments:
This means that you will pay 5.19% for the first two years, then, based on current interest rates, 7.44% for the term of the mortgage, but you will be paying this tax, time, more or less than 7.44%. 7.4% indicated that the average amount you pay over the term of the mortgage in exchange rates are now based.
Do not worry, after 2 years, until you change to another fixed rate.
Interest rate loans, which pay much money to borrow money from the lender.
Suppose you have $ 100,000. ready. Your monthly payment $ 548th Of this amount, $ 426 is the interest you pay 122 U.S. dollars. ) is the principal (the loan.
So, next month, the loan balance of 100,000 to 122 = 99878.
Interest is the lender.
No, I prefer to use a 30-year fixed-rate loan if I want to live in the house for a very long time.
The first offer and monitor the rate I think that speaks for itself - what is of interest is 5.19% fixed for 2 years and then the banks with a standard variable rate (currently 7.44%). This is the rate at the time and does not guarantee the same for the prices at 2 years!
The overall cost for comparison rate charged, May to sign the agreement contains. For example - if you pay £ 1000 by mortgage rate agreement, then it will be included in the cost of providing the overall cost for comparison. From the sound of things - the setting of fees to be very high because it seems there is hardly any difference if it takes into account the cost between this and the standard rate may vary.
If you continue with it depends on how much your mortgage. For example, a £ 200,000 mortgage can be profitable because the fees probably represent only a small percentage. If the mortgage is on the other side less than £ 75,000, you may find that the agreement is worth.
Complex I know, but better on the numbers in a spreadsheet or deathGage simulator before you decide what direction we go.
I hope that helps.
Ed
some information about http://www.choicefinance.net/faq/what-is April ...
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