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.
1 Divide your annual interest rate by 12 if you want to calculate interest on a monthly basis; divide by 4 if quarterly interest is to be calculated. 2  Place this in cell B2. 3  The number of periods involved in your loan or investment goes in the cell in B3. Place this in cell B2. 2  The number of periods involved in your loan or investment goes in the cell in B3. 3  If calculating an interest payment for an investment with an indefinite length, use the number of interest payments in a year. 4  This will be the same number you divided the interest rate by in the Interest Rate cell.