Personal Finance and Investing

seabeyond

(110,159 posts) Thu Apr 18, 2013, 12:29 PM Apr 2013

i do not know where to ask. what would a reasonable interest rate be

on a house loan of 220,000. for 20 years. and about how much interest would that be by pay off.

further thought. this was in 1998. so i have to take into acct way back then. i see this chart.

2 replies

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i do not know where to ask. what would a reasonable interest rate be (Original Post) seabeyond Apr 2013 OP

Do a search for mortgage rate calculators. Betsy Ross Apr 2013 #1

It's not too hard to build an amortization schedule in a spreadsheet lastlib Apr 2013 #2

Betsy Ross

(3,147 posts)

1. Do a search for mortgage rate calculators.

Reply to seabeyond (Original post)

Thu Apr 18, 2013, 12:34 PM

Apr 2013

Here's a site: http://www.bankrate.com/calculators/index-of-mortgage-calculators.aspx?ec_id=m1027724&ef_id=UWy1iAAABfI3@A-0:20130418163300:s

lastlib

(23,457 posts)

2. It's not too hard to build an amortization schedule in a spreadsheet

Reply to seabeyond (Original post)

Thu Apr 18, 2013, 02:14 PM

Apr 2013

In Excel, you can use the PMT() function to calculate the periodic payment; using your principal amount ($220,000) and term (20 yrs, or 240 months) with a reasonable interest rate from the chart for 1998 (I used 7.5% annually, which reduces to 0.625% monthly--a bank may use different conventions for calculating the periodic interest), I calculated a monthly payment of $1,772.31; the initial monthly interest is $1,375, so initial principal paid is $397.31. Subtracting that from the initial principal, then carrying that through the next 239 monthly iterations, the total interest charged figures to $205,351.74.

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