How much interest should I pay on $50,000

[BonerBoy]

My mother passed away and I am buying the home. My sister will loan me part of her 1/3 share in the home. about $50,000

I need to borrow it for 2 yrs. I was thinking 8% would be right

How much would I owe her in two yrs?

 

[bran987]

if it's just a note with annual compounding and you're not paying her until the end of the 2 years, you'd ower her $58,320 at the end of 2 years.

not sure what you mean by "my sister is loaning me part of her 1/3 share in the home" though. is she offering you seller financing or is she actually loaning you cash? seller financing would probably be structured differently.

 

[BonerBoy]

if it's just a note with annual compounding and you're not paying her until the end of the 2 years, you'd ower her $58,320 at the end of 2 years.

not sure what you mean by "my sister is loaning me part of her 1/3 share in the home" though. is she offering you seller financing or is she actually loaning you cash? seller financing would probably be structured differently.

I have 2 sisters each of us inherit 1/3 minus outstanding debt

The house apraised at $223,000, there is about $14,000 in outstanding debt so, that leaves $209,000, divided 3 ways is $69,666

I will cash out one of them for about $70,000, the other wants $20,000 in cash and will take a note for for the rest

Compounded annualy is realy what I wanted to know about, I was'nt sure how it should be, There's realy no need for a broker If we can go with out one will be much cheaper for everyone

It should be easy to write a note like this, I would think

I hope to close next week

Thanks for you help Bran

 

[bran987]

no problem, if you need to calculate a different annual amount just use this formula:

Money You Borrow * (1 + interest rate) ^ number of years = Money You Owe

So for instance in this case:

50,000 * (1 + .08) ^ 2 = 58,320

That's high finance lmao.

 

[BonerBoy]

right on, thanks

 

[sawastea]

Sorry to hear of your mom's passing, bonerboy. My thoughts and prayers are with you.

 

[Lestat]

sorry for your loss man.

8% is pretty high though, but its family so rules don't always apply.

 

[BonerBoy]

Sorry to hear of your mom's passing, bonerboy. My thoughts and prayers are with you.

Thanks bro

Take care

 

[BonerBoy]

sorry for your loss man.

8% is pretty high though, but its family so rules don't always apply.

Thanks, Yeah its a little high but she's helping me out and the house is in a hot area and I'd hate to lose it to some fu--ing yuppy

 

[SgtSlaughter]

BonerBoy sorry to hear about your loss bro... and good luck with the Financing.

On a similar note... I am paying 7.25% on 3 past school loans, I'm dumping as much as I can per month to the principal because the interest rate is outrageous.

I have one other school loan at 1.8% with only 6k ... that i'm letting sit while I pay the others, lol.

- SGT

P.S. I hate credit cards.

And I don't understand people that say: "If you can finance it, you can afford it." Granted circumstances vary, but paying interest is simply... shitty.