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.
Interest on a daily simple interest loan is calculated by using the daily simple interest method. This means. that interest accrues on a daily basis on the amount of the loan (current outstanding principal balance) from. the date the interest charges begin until you repay the loan. The daily simple interest method counts the.