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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?

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

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

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

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

    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.

    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..


    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.

    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.

    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.

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

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