My rule of thumb.
A 100k house should give me a rental income of 1k.
Investment Mortgage Basics Help
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 Feb 8 2009, 09:34 PM
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Feb 8 2009, 11:29 PM
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QUOTE(benjinn @ Feb 8 2009, 10:42 PM) I have been to the iproperty website. It has calculated for me the monthly repayments. GIYBF, google is your best friend.But what I would like to know is how is it calculated? Say I take a $10000 loan, with 10% interest, for 10 years, with payments in equal monthly amounts (as are all the home loans, I think) Monthly repayments, interest, principal repayments. I am really curious how it works, as I believe it is the basics, and any changes in interest rates, early or 'extra' payments on top of the monthly payments, evaluation of different mortgage packages etc, can be done or be better understood. Any website, or program that would show me how it is done? In a table if possible, or a step by step guide.  Housing loan is the reverse of fix deposit. If you have a deposit of 10k @ 10%, every year you earn $1k of interest. Every year taking out 1k, would still leaves your 10k earning interest. If you take out $100 every month, works out to be $1.2k per year. That would reduce the principle of your 10k every year. After 216 months would take out all of your money. Same as taking a $10k loan and repay all after 216 months. By then your loan interest would be $11.6k. |
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