This is how a lease option should work: After securing the go-ahead from a mortgage broker and before moving in, your potential buyer will give you a healthy, nonrefundable deposit to go toward the down payment of the house -- typically, 3 to 5 percent of the purchase price.
The amount of interest that accrues on your loan is determined by a simple daily interest calculation: Your current principal balance Ã The number of days since your last payment Ã Interest rate factor = interest rate Ã· 365.25 (number of days in a year) = Your daily interest rate.
The simple in a simple interest loan means that interest is only calculated on the outstanding principal balance. Simple interest does not compound and increase the loan balance.The amount of interest to be paid for each monthly payment cannot increase. If you're late or miss a car loan payment, the missed interest payment will not be added to the loan balance, and additional interest will not be calculated on the higher balance.nterest Calculated on Principal Balance. With a simple interest loan, the interest paid is calculated on the outstanding loan balance. As monthly payments are made and the balance decreases, the amount of interest paid will decrease.