Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Is it best to give a big down payment when you're buying a property so the interest can go down?

If I pay the 14,000 within one year and its 4% interest is that 293 in total of interest instead of 1500 extra for 5 yrs? How is the best way to save on interest should I make the contract 4 yrs instead of 5 and try paying it within one year to save?

Answer Question
 
Anonymous

Asked by Anonymous at 3:48 AM on Oct. 8, 2009 in Money & Work

Answers (7)
  • What's the principal amount of the loan?
    PaceMyself

    Answer by PaceMyself at 3:52 AM on Oct. 8, 2009

  • deed of trust Principal 10,940.
    and i'm giving 3,180 down.
    Anonymous

    Answer by Anonymous at 3:54 AM on Oct. 8, 2009

  • I'm sorry, it's late. What's the length of the loan?
    Right now you have a $7760 loan at 4% interest. Simple calculation is an interest amount of around $310 annually - however if this is a home loan interest is calculated differently.
    PaceMyself

    Answer by PaceMyself at 4:26 AM on Oct. 8, 2009

  • My Husband And I Bought A Home Several Years Back... We Made A Large Down Payment. So That Would Give Us Lower Monthly Payments..

    Anonymous

    Answer by Anonymous at 4:33 AM on Oct. 8, 2009

  • The greater the cash down and lower the interest, the more money you will save over the life of the loan.
    halfpint_ny

    Answer by halfpint_ny at 6:22 AM on Oct. 8, 2009

  • Most banks have calculators available on their website so that you can plug in different scenarios and estimate payments.
    motherofhope98

    Answer by motherofhope98 at 7:59 AM on Oct. 8, 2009

  • Thats all assuming you are getting a loan through a bank. If it is a real estate loan you have to pay points and the more money you put down the lower your interest rate can be to a point. It won't go any lower than is allowed even if you put more money down.
    itsmesteph11

    Answer by itsmesteph11 at 9:39 AM on Oct. 8, 2009

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.

Next question in Money & Work
Wow I am stupid..

Next question overall (Politics & Current Events)
swine flu

close Join now to connect to
other members!
Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN