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.
Method 1 Calculating Simple Interest. 1. Understand the interest expense formula. The formula to calculate interest is Interest = Prt where P equals Principal, or the amount of the loan outstanding, r equals the rate of interest charged, and t equals the amount of time that the loan will be outstanding.