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.
This number is typically monthly, so if a lender says the small business has two years to pay the loan back, the number of periods is 24. For example, a small-business owner obtains a loan for $20,000.He has two years to pay the loan back and the lender provides him with a 6 percent interest rate.Step 2. Calculate the monthly interest rate.Lenders will provide the interest rate for the year, so the rate must be divided by 12 to determine how much of the interest applies on a monthly basis. In our example, 6 percent divided by 12 months equals 0.005.tep 2. Calculate the monthly interest rate. Lenders will provide the interest rate for the year, so the rate must be divided by 12 to determine how much of the interest applies on a monthly basis. In our example, 6 percent divided by 12 months equals 0.005.