On defered interest mortgage loans, is the defered interest just added or does it gain interest to?
cj asked:
meaning if my balance is $500,000 and i defer $2500, am i now paying interest charges for $502,500?
I appreciate your concern, however im earning 30% on what im deffering wich is alot more than what is snowballing
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meaning if my balance is $500,000 and i defer $2500, am i now paying interest charges for $502,500?
I appreciate your concern, however im earning 30% on what im deffering wich is alot more than what is snowballing
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September 18th, 2008 at 12:20 pm
The deferred interest is added to the principal amount owed. Then you are charged interest on the new principal amount.
September 21st, 2008 at 1:21 pm
The interest is being compounded against you. You are now being chased by the snowball of compounding interest. You need to make these payments.