How to calculate interest only payments on construction loan?
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Asked By: Justine Jacobs
Date created: Thu, Mar 18, 2021 7:16 AM
Date updated: Mon, May 22, 2023 7:28 AM
Content
Video answer: Adding an "interest only" period to an amortization schedule…
Top best answers to the question «How to calculate interest only payments on construction loan»
Interest on a construction loan is a very simple formula that anyone can calculate. If your current interest rate is 7.75% you simply take the balance that has been drawn or borrowed. You then multiply this balance by . 0775.
How do you calculate interest on a construction loan?
- Interest on a construction loan is a very simple formula that anyone can calculate. If your current interest rate is 7.75% you simply take the balance that has been drawn or borrowed. You then multiply this balance by .0775. Then take that number and multiply it by 12 ( 12 months in a year ).
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