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MORTGAGE QUESTION

Why do people I know that get a loan for $150,000 the pay back almost triple? Is it because of them signing for a sub prime loan. How do you avoid this situation? by AMID HILL from minden, Louisiana. Dec 26th 2010 Reply


Rick Pelleriti (RickPelleriti)
#363 ranked lender in California - 59 contributions

It depends on the interest rate. Typically, on a 30 year amortized loan at a standard rate between 4% and 5%, the total amount paid back is approximately twice as much.The total amount will always be shown on a required form called the TIL (Truth In Lending) statement.The higher the interest rate, the more is paid back in the form of interest.You will know upfront what you will be paying back before the loan proceeds very far.You will not be paying back "triple" if you can qualify for a standard, conventional loan.I hope that helps.

Dec 26th 2010
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John A Soricelli Jr (John A Soricelli Jr)
#167 ranked lender in California - 151 contributions

Amid - Rick answered your question well. If you would like to run some numbers for yourself you can use the refinance calculator on my website. www.ThinkJohnAJr.com

Dec 27th 2010
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Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions

The shorter the term of the loan, the less would be paid in interest. ... What you stated is the normal amount of interest earned on a 30 year loan. .... The way to avoid this would be to pay cash. .... Happy funding, Rudi

Dec 27th 2010
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