Posted on: 06th Sep, 2009 05:49 pm
66900 is the loan amount. fixed interest rate of 5.25% for ten years.
the payment due each month is 715.00. i plan to pay that. my son will pay 400.00 toward principal each month which will help to pay the loan off in 6 years instead of ten. this will save about 8000.00 in interest. how do i figure out how much my son will owe us in interest if he pays us back in fifteen years. that is 9 years beyond the 6 years it will take to pay the loan. if we want 4% interest on the amount he owes, what will his payments be after the six years?
the payment due each month is 715.00. i plan to pay that. my son will pay 400.00 toward principal each month which will help to pay the loan off in 6 years instead of ten. this will save about 8000.00 in interest. how do i figure out how much my son will owe us in interest if he pays us back in fifteen years. that is 9 years beyond the 6 years it will take to pay the loan. if we want 4% interest on the amount he owes, what will his payments be after the six years?
As far as I can understand your situation, you will have to multiply your monthly payments along with the number of years he would make the payment for ie. $715 X 72 months(6 years) = $51480. He will have to return this amount to you at 4% interest rate. Alternatively, your son can use the following calculator to calculate the payments.
http://www.mortgagefit.com/calculators/simple.html
http://www.mortgagefit.com/calculators/simple.html