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.
Multiply your principal balance by your daily rate in decimal form. Assuming a principal balance of $234,000, the daily interest on our sample loan is $234,000 times 0.00022, which equals $51.48. This is the amount of money you'll pay in interest each day while your principal is at its current balance.