Maria asks…

## Will the APR always be higher than the quoted rate for a 30 year mortgage?

I’ve noticed in some APR calculators specifically for fixed rate products that when a higher APR is chosen such that the **mortgage** company pays you points to take that higher rate, the quoted APR may be lower than the actual rate?

Is that correct or is there an issue with the APR calculation?

### admin answers:

APR would always be higher because it also factors in the fees you pay to get the loan as part of the interest cost.

Robert asks…

## I need help with what type of mortgage to get and interest rates?

I am considering getting a **mortgage**, but i don’t know which kind of **mortgage** would be best suited. I am inteding on borrowng between £45,000 and £55,000 over 20-25 years but i don’t know what type of **mortgage** is best to get and how much monthly repayments would be. If anyone can give me an estimate of a monthly repayment for the amount and time to repay that would help greatly. I tried using some online calculators but i was informed that they are not very accurate as i don’t know exactly what interest **rates** would be:)

Many thanks! 🙂

### admin answers:

Try this link below they have a 10 yr fixed rate so for 10 years you know exactly how much you will be paying each month. A 45k loan over 25 years would cost £278 give or take a few pounds per month for example

www.westbrom.co.uk

George asks…

## Which mortgage estimate is right?

My wife and I are looking into buying a house. Online **mortgage** calculators give us an estimate of about $700-800 (diff. interest **rates**) taxes added no PMI needed. Someone told us they have called a bank and got a quote of $980. Huge difference. 105K loan at around 5%, 30 yr fixed. Why the big difference and which is right?

### admin answers:

Not knowing your taxes how could anyone tell.

Principal & Interest on $105,000.00 at 5% over 30 years would be $563.66 add your taxes and insurance and you have your mortgage payment.

I suggest you get a good faith estimate which your loan officer will give you at application. You will need to give them an estimate for the property taxes and insurance and they will estimate your payment based upon a interest rate they can lock in on that day and they will estimate your closing costs.

Why go on what “Someone says” when you can get the information from the loan officer themselves.

Charles asks…

## Is there a simple way to find a monthly mortgage payment without taxes and escrow?

How do you solve: “the price of the home is $133,000 w/20% down, 3 points at a rate of 8.5% for a 30 year fixed **mortgage**. For this particular example, I don’t need Taxes and escrow is not required. Do I need a specific **calculator**? I have a TI-30xA scientific **calculator**

thank you

### admin answers:

You need a financial calculator to solve these kinds of problems. There are a bazillion calculators on-line that would solve this problem, but I can give you the answer. I loved my HP-12C, but there are many others out there if you are looking for a handheld.

$818.13.

I hope the scenario is not an actual mortgage quote. That would be ridiculous; 8.5% paying 3%?

Laura asks…

## How much will my £51,000 mortgage be in 5 years time?

I am a first time buyer buying a flat at £67,500, borrowing £51,000 with a 5 year fixed rate deal at 4.89% over 30 years with daily interest. The **mortgage** payment is £280 a month. Assume I don’t make any overpayments as these will be limited anyway. Please can you explain how it’s calculated or direct me to a website with an online **calculator** for this. Thanks.

### admin answers:

My keyboard does not have a pound symbol, so I’ll use dollars:

Your principal balance after 5 years will be about $46,000.

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