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How much should a mortgage cost for an 81500.00 home?

Posted on: 15th Oct, 2013 07:44 am
Our bank is saying they want to charge us 20 percent interest wich only comes out to around 97000 and we would pay the taxes and everything through the mortgage we'd also have to open an escrow I've done the numbers and it only comes out to 450 to 500 dollars a month for25- 30 years but the bank is saying they want 650 a month for 25 years which comes out to be 650 per month. How is this possible?
Hi April!

Welcome to the forums!

First and foremost 20% interest is too much for a loan in this market. It will be better if you could get in touch with other lenders and apply for a loan. May be they will be able to offer you a better rate of interest.

Feel free to ask if you've further queries.

Sussane
Posted on: 15th Oct, 2013 08:25 pm
Well, paying 20% interest rate on your loan seems to be quite expensive. What you can do is talk to the other lenders and find if anyone can offer you a loan at a less rate. By doing thorough shopping, you'll surely be able to find a lender who'll provide you the loan at a suitable interest rate.
Posted on: 16th Oct, 2013 12:20 am
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