Home Buying in Alvin>Question Details

Rodeostar, Home Buyer in Alvin, TX

if a house cost 60,000 and i borrow for a 30 year loan does it end up costing like about $119,000

Asked by Rodeostar, Alvin, TX Fri Apr 29, 2011

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You can try obtaining a 10-year loan @ 3.25%. Your monthly payments will be about $586 and your total payout after 10 years will be about $70,357.
1 vote Thank Flag Link Fri Apr 29, 2011
Is there another way to borrow the money from a bank and not have to pay so much interest on $60,000
I think i saw somewhere that some places have interest rates at like 3.25 or something
0 votes Thank Flag Link Fri Apr 29, 2011
The amount that you'd end up paying over time will depend upon your interest rate/terms and the amount that you put down; it also depends upon how fast you pay off your loan. For example, let's say that you put 20% down (or $12K), finance the rest of the balance at 6% APR for 30 years fixed, and make the regular monthly payments over the 30 years. You will have paid $115,602.33 over the duration of that loan. Yet, if you put 10% down, and keep the rest of the terms the same, then you will have paid $122,552.62.

Now, let's say that you put 20% down, and finance the rest of the balance at 7% APR for 30 years fixed, and make the regular monthly payments over the 30 years. You will have paid $126,964.27. Yet, if you'd pay off that 30-year loan at the end of 15 years, then you will have paid $105,010.53.

Keep in mind that those amounts exclude any additional loan origination related fees (which are negotiable [and typically lower the overall amount due]).
0 votes Thank Flag Link Fri Apr 29, 2011
My math works the same as Oggi. I get $115,953.47 for $60,000 borrowed for 30 years at 5%. There will also be fees associated with originating the loan so the true final cost will likely be a little higher.
0 votes Thank Flag Link Fri Apr 29, 2011
Yes, $60K at 5% for 30 years comes to about $116K in total payment.
0 votes Thank Flag Link Fri Apr 29, 2011
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