Current mortgage interest rates enthaki ostunnayi? emanna taggacha by eod?

[Captain_nd_Coke]

39 minutes ago, neneno1 said:

Interest rates will be based on the outstanding loan amount each month. So it shouldnt matter if it is 5/1 or 7/1 or 30 fixed kada..

even if you dont refinance you will pay interest on outstanding loan..

Amortization schedule choodali..

 

Almost 100% all lenders do charge high towards interest in first 7 years of total monthly emi, after 7 years or so, majority will shift towards principle amount

[AnandaVivek]

21 minutes ago, Captain_nd_Coke said:

Amortization schedule choodali..

 

Almost 100% all lenders do charge high towards interest in first 7 years of total monthly emi, after 7 years or so, majority will shift towards principle amount

Epudayina anthe…so refinance chesukundam le 1 to 2 years lo anukunte, correct logic kaadhu..u are paying sht load of money towards interest in those 2 years

[neneno1]

41 minutes ago, Thokkalee said:

In ARM loans, the interest rates increase by 1% or so after the initial loan term (5 years), the rate increases every year.. you will end up paying more and more interest instead of principal as in a fixed rate loan.. 

ARM loan teskunede to refinance in less than 5 years...alanti appudu why do we have to worry about interest rate increase that they do after 5 years?

[neneno1]

37 minutes ago, Captain_nd_Coke said:

Amortization schedule choodali..

 

Almost 100% all lenders do charge high towards interest in first 7 years of total monthly emi, after 7 years or so, majority will shift towards principle amount

No to my knowledge interest is always paid on the remaining balance...over 7 years ur payment to interest per month will naturally decrease as you would have also paid the principal over the last 7 years...

atleast that's how I see in my current loan 

[golmaalgovindam]

ARM vs Regular loan ki edhaina calculator undha? Wanted to see the diff …

[Captain_nd_Coke]

1 hour ago, neneno1 said:

No to my knowledge interest is always paid on the remaining balance...over 7 years ur payment to interest per month will naturally decrease as you would have also paid the principal over the last 7 years...

atleast that's how I see in my current loan 

Haha thats how finance works, it isn't used to be like that, few decades back it was. Many ppl paid more a year and cleared off loan and some did refinance and lenders lost the interest they are abt to earn had they stayed full term. Thats why they changed the system and the current amortization way came in. Read more on that you will understand. 

Anduke usually firs time town home kone vallu 5/1 or 7/1  teskoni after 5 years they sell and go to sfh, thats when arm is good. For folks starting with sfh or want to stay in it for a while arm's waste. W/in 5 yrs ammese aalochana untene arms better

[Kurrodu1]

8 hours ago, neneno1 said:

ee high interest valla new homes purchases taggutayi...how will rental market be?

I wrote the contract for a new purchase many months back assuming I can sell my current condo (2.625 interest for this condo)

Can i expect the rental market to go up?

Retal market up aithadi for sure.

[veerigadu]

4 hours ago, Thokkalee said:

In ARM loans, the interest rates increase by 1% or so after the initial loan term (5 years), the rate increases every year.. you will end up paying more and more interest instead of principal as in a fixed rate loan.. 

it’s better to pay off loan in less than 10 years. 

[veerigadu]

3 minutes ago, Kurrodu1 said:

Retal market up aithadi for sure.

Not necessarily. If people lose jobs then evictions etc valla rental market kudaa affect ayithadhiii. Recession has a domino effect. It affects everyone. 

[quickgun_murugun]

7 hours ago, neneno1 said:

ARM loan teskunede to refinance in less than 5 years...alanti appudu why do we have to worry about interest rate increase that they do after 5 years?

Refinance is not economical . You end up paying more interest unless rates drop by 50% of your current rate ! 

[golmaalgovindam]

7 hours ago, veerigadu said:

it’s better to pay off loan in less than 10 years. 

Ndhuku Ala … almost andharu 30 yrs loan tho ne veltharu kadha