Its been awhile since I’ve had to do this so I’m looking for clarification.

Purchase price is 60K. Private money at 15% on a 6 month note. My payments are 750.00 a month?

Nate-WI

Its been awhile since I’ve had to do this so I’m looking for clarification.

Purchase price is 60K. Private money at 15% on a 6 month note. My payments are 750.00 a month?

Nate-WI

Since there is no principal amortization with an IO loan the payment calc is easy. Just multiply loan balance by interest rate which gives you the annual payment and divide by the payment periods, here monthly. Your calc is correct, $750/month.

Do you mean how do you calculate interest on a given sum, or what will your monthly holding costs be? Just remember you’ll need some insurance and other things every month too (sorry to beat a dead horse, I’m not sure if you mean your monthly payments on an i/o loan, or just how to compute interest on a given principal amount)