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how long would it take to pay off in two years? I’m Thinking about buying a small home. I did it by Calculator but I don’t know how to factor in the interest because by the time i made the monthly payment only so much goes to principal so trying to factor the payment and principal for a two year loan

4 Thoughts on IF i OWED $58,000 WITH 4.875 INTREST?
  1. Reply
    Overnight
    July 29, 2013 at 6:28 am

    I don’t understand your question… “How long would it take to pay off in two years”?

    Umm.. 24 months… 730 days… 104 weeks…

    Not sure what you’re looking for here hoss.

    You’re looking at payments of about 2,550.00 a month though to pay off that amount in that time frame.

  2. Reply
    spike101x
    July 29, 2013 at 6:47 am

    Do you mean what would be your monthly payment?

    Not including closing costs and insurance= $ 2,541.29 per month for two years.

  3. Reply
    SGT V
    July 29, 2013 at 7:30 am

    2 years. You ask “if I owed $ 58k with 4.875 interest how long would it take to pay off in two years”. Question asked and answered by you. I believe the question was meant to be how much would you have to pay monthly. According to the link below it would cost you $ 2,541.29 a month not including taxes, and homeowners insurance.

  4. Reply
    Lauren F
    July 29, 2013 at 8:14 am

    It is unlikely a bank would give you a conventional mortgage for just $ 58,000 for just 2 years. Most banks want to see a conventional mortgage loan of around $ 100,000 for it to be profitable for them, with a 10 to 30 year repayment term. And, they will want to see that you have at least enough reliable income each week to make the monthly payment including interest and taxes.

    So, unless you have a weekly income of $ 2,500, a bank is not likely to approve a 2 year loan..

    You could maybe get approved with a home equity line of credit, depending on the overall value of the home and the equity you will have in it through your downpayment, and a longer payment term, such as a 10 year loan. Then, if you find you have extra income, you can pay it down more quickly.

    There are some great deals out there and very low interest rates. Two that I especially like are the pentagon federal credit union (they have a 5/5 adjustable rate loan at 3.25% with no closing costs), and ING bank. If you think you can pay the house off quickly, consider an adjustable rate for the lower interest cost.

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