Posted on: 06th Mar, 2009 02:09 pm
I have a 30year loan at 6.125% that is interest only for the first 10 years that I am about 4 years into and have made only small payments towards the principal. I would like to figure out how much I need to add to the principal over the remaining term of the loan so that it "performs" like a standard fixed rate loan.
That all depends upon what your loan amount is and how much you can afford each month. After the 10th year, the remaining principal balance will be spread out over the next 20 years.
At this point, just pay whatever you can afford. The more the better because your payment will really jump up in 6 years.
At this point, just pay whatever you can afford. The more the better because your payment will really jump up in 6 years.
The principal balance is $144k. I was thinking I would be able to arrive at a figure that would approximate the payment if this was a conventional loan. Guess I can just get an amortization schedule and go from there?
