What will happen to the interest$  paid on an interest only loan when I refinance if minimum$pd to principle?
365920
If the loan is an interest only loan you don't have to refinance. If it is a balloon you do have to refinance.  An interest only loan should only be used to purchase either a larger home than the one affordable using a conventional loan (if you plan on keeping it) or a home that you plan on selling it before the I/O term selected expires (very useful in hot markets where properties appreciate a lot in 5-7 yrs). But if the house is not in a hot market and you expect to live it forever then you should go with a conventional loan. As to what happens to the interest paid, you can deduct it from your taxes if your state allows for such a deduction.  Another good use for an I/O loan is when interest rates are high and you plan on refinancing when these come down.
1049967
You only pay interest on the amount of time you borrow the money it's annualized because that is the amount you'll pay if you borrower the money for one year. It's always interest on (what you still owe) So if you make additional payments towards principal you will definitely pay it off sooner, and make permanent headway if it's a fixed payment.
210067
I looked into interest-only loans for investing.  I own 5 investment properties, 3 with no mortgages, 2 with just under 27 years left on 30 year fixed.\n\nIn my opinion, interest-only loans are designed to rip-off people who aren't very good at math, or those who have too much money.  Which are you?  If you are neither, compare the various loans looking at parameters that are important to you.  For me, it was the amount I paid in interest and the amount of the total payment (P&I).  I would have done shorter term than 30 years, but with vacancy, I needed a sure thing.\n\nI don't like debt very much, that's why I bought three of the houses with cash.  When I recently re-fied the 2 with mortgages, I kept the existing terms of ~27 years instead of extending out to 30 years.  I am also paying extra principal on the one that I intend to own and keep in the family for generations.  I hope to have that paid off in about 10 years, savings about 100K in interest.  Overall, I am not yet cash flow positive except on the 3 without mortgages, just one more reason I prefer cash.  BTW, these are in Pittsburgh, PA, where you can (or could 2-3 years ago) buy a house in ok condition for under 20K.  The 2 with mortgages are multi-units (triplexs) and around $100K to purchase.\n\nBest of Luck
206298
Depends entirely on your lender, in terms of fees, prepays of interest, which loan term you choose, whether you go through a broker or direct lender, etc.  Ask around, get some offers, and compare.  Also, they should tell you how long it will take you to recoup the cost of the refinancing--and you can consider whether or not you'd still be living in the house at that point, or will have sold it.
139549
your rate is 2.25 plus the treasurey index at the time of your adjustment. (yearly, every six months, etc.) I am a mortgage broker if you need to refi email me, I can answer all your questions.
851066
That means the loan, not the house. You probably have a prepay penalty for the first 2 years, and you'll end up paying thousands in penalties if you refi before the prepay expires. Make sure the broker meant a prepay and not something else.
88672
Contact your state Banking Department.  They will have information on your state's lending practices.  If your mortgage has such a restriction, it will be worth your time to refinance and get a lower rate and no mortgage insurance.  Good luck!
559934
The terms of your loan can be anything.  The documents that spells out the terms is the "promissory note."  There are 2 parts to your payment each month.  The first is the interest - which is calculated by multiplying the amount your owe (the principal) by the interest rate and dividing by 12 (for one month's payment).  So the answer is the balance you owe determines the payment, not the original amount.\n\nThe second part of your payment is the principal.  Although some loans are interest only.  If you are paying back principal each month then they have amortized the payments so that they are the same amount for the life of the loan.  In actuality you start by paying almost all interest and just a little principal.  Then the more payments you make,  the proportion of your monthly payment that is principal gets bigger and bigger.  Toward the end of the loan,  your payments are almost all principal.  Because the payments don't change in amount it seems like you are paying on the original amount, but you are always paying on the outstanding balance.
812156
you can have a negative amortization loan where unpaid interest is added to principal
1109808
Are you sure you have written the problem correctly?  As of right now, the answer is infinite or never.\n\nAfter the first year's interest at 18%, that's an extra 9000 added on.  If you're only paying 4900 annually, the loan amount will just increase forever.  I could be missing something obvious, though.
480849
they may negotiate the interest portion of the balance you owe. But- not likely... They would prefer that you just keep your money and make the minimum payment each month for the rest of your life.  What incentive do they get by taking less than the balance?  They don't want you to pay the account off. They gave you the account in the first place so that you would use it, keep a balance on it so they can charge you interest.  Why not just negotiate a lower interest rate.  If they say no to that, tell them you will be shopping for a lower interest card & do it & close your account.\n\nThe only situation that I know where they will eagerly negotiate and accept less than you owe is if you are in default on your account already.  They will then be more likely to take what they can get now instead of spending the money to try and go after you via collection agencies or court. Since you just refi'd your house I am assuming your credit accounts are in good standing though & probably doesn't apply to your situation.
834889
Depending on how long you have had the loan I would say probably never. This because most lenders calculate the interest portion of you payment using the rule of 78's. Simply put this means that most of your payments in the first year are going to interest not to principle.  Ask the lender what the payoff number is and you should be able to determine how they have treated yor loan.
828295
You  can't do it with the plus loan, but you could refinance with a private load that allows it.  I don't recommend it though.  Paying interest only you will never get the loan paid off, and the difference in the payment would not be that much since at the begining, the largest part of your payment is interest.
16707
Yes, go here and use one of the calculators offered...\n\nhttp://mortgages.interest.com/content/calculators/index.asp
70181
I'm trying to do this like a basic math question, so forgive me if I do end up giving you the wrong answer. Firstly, I'm assuming that you're going to pay the deposit payment first right? Plus I hope that DP means deposit payment, because if I'm wrong you can just ignore what I typed below. I also assume that your 18% yearly interest would be divided into 12 months payment. Okay! We start!\nFirst, you minus the deposit payment of 144,000 out of the total price of 720,000, leaving you the balance of 576,000. This was already confirmed in your question. \nNext, you have to deduct the amount you pay for the first year, which is a total of 9,600 x 12 = 115,200. When you deduct 115,200 from 576,000, you get 460,800 left. With me so far? Okay, we'll move on...\nNow you have four years left to pay up, so basically you divide the balance of 460,800 between the four years. You'll get 115,200 per year. \nNow remember the 18% interest per year? You'll find that if you apply 18% interest per month, you'll get the same amount as calculated per year. So let's stick to calculating per month, shall we?\nRemember the 115,200 you have to pay each year? Now divide that amount by twelve (months) and then times the answer with 118%. Yes, 118%. \n(If you prefer using 18% and then adding that to the month's original payment, that's also fine. But it's the long way round)\nMeaning:\n(115,200 / 12 ) x (118 / 100) = 11328\nSo this means that you have to pay 11328 per month (interest already included)for the next four years. Got it?
554511
That depends on if the bank you got your loan through will penalize you if you pay it off faster- sadly a lot of banks do that. Try calling the bank, explain you have a loan through them, and ask them if you can pay extra on your principle amount each month. If they say yes, then when you write your check for the payments, make sure to include an extra note which says, "Please apply any extra amount to my principle".\n\nIt also matters on how big your payments are- how much you can afford to pay per month.
149317
There really are no calculations because they are not charging you ANY interest at all (probably for a certain amount of time only, right?) You will only be paying the Principle during that time, which means you are making a payment that actually reduces the total cost by the exact amount you pay.  WHen interest begins accruing, then each payment you make will be partially going to the product cost (prinicple) and partially to the interest cost (the creditor's profit for lending the money).  There is no better interest rate than 0%.  So, good going!