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.
Calculating Amortization. You can calculate a mortgage amortization schedule if you know a couple of key pieces of information: periodic interest rate and loan balance. Beginning with the first month, multiply the mortgage balance by the periodic interest rate.This will give you the first month's interest payment.Subtract that interest payment from the total payment to learn the principal amount. To figure the principal and interest payments for subsequent months, subtract the first month's payment from the mortgage balance, then repeat.his will give you the first month's interest payment. Subtract that interest payment from the total payment to learn the principal amount. To figure the principal and interest payments for subsequent months, subtract the first month's payment from the mortgage balance, then repeat.