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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: loan calculations Posted by Ward-CA- on September 06, 2001 at 6:24 AM In Reply to: loan calculations posted by Alfred B. on September 05, 2001 at 9:16 PM : Howdy Ward, : A little confused on this one point. I need to know the rule of thumb again so that I can cement it in my mind. When calculating remaining balances on loans regarding doing a JBB... I know that you use a 30 year fixed term for the first, but... : 1) Do you use a 30 or a 15 term for the 2nd? : 2) And what about if the 1st and 2nd are on the same date (an owner carry or some such), do you do the both of them as 30 terms? : 3) Also... is it correct to always add 1/2 point of interest to the 1st and always add 4 points of interest to the 2nd? : 4) And lastly, would you add 4 points to the 2nd in the case of #2 above when the loans are both on the same date? : Thanks old buddy, old pal. =•=•=•=•=•=•=•=•=•=•=•=•= Alfred, for all junior liens, regardless of whether they recorded along with a senior trust deed or not, I assume the worst, that they aren’t amortizing at all. I assume their payments are on an “interest only “ basis. 3). You only add that 1/2 point of interest to a 1st if the loan is conventional and you got the rate from the FHA/VA rate page. And yes, always add 4 points to the stated interest rate when guessing the interest rate for a junior lien. 4). Yes, because the simultaneousness of the recording a 1st and a 2nd has nothing to do with their respective interest rates. Hope this helps. Follow Ups: Re: loan calculations... further clarification Alfred B. 8:29 AM, 09/06/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Howdy Ward, : : A little confused on this one point. I need to know the rule of thumb again so that I can cement it in my mind. When calculating remaining balances on loans regarding doing a JBB... I know that you use a 30 year fixed term for the first, but... : : 1) Do you use a 30 or a 15 term for the 2nd? : : 2) And what about if the 1st and 2nd are on the same date (an owner carry or some such), do you do the both of them as 30 terms? : : 3) Also... is it correct to always add 1/2 point of interest to the 1st and always add 4 points of interest to the 2nd? : : 4) And lastly, would you add 4 points to the 2nd in the case of #2 above when the loans are both on the same date? : : Thanks old buddy, old pal. : =•=•=•=•=•=•=•=•=•=•=•=•= : Alfred, for all junior liens, regardless of whether they recorded along with a senior trust deed or not, I assume the worst, that they aren’t amortizing at all. I assume their payments are on an “interest only “ basis. : 3). You only add that 1/2 point of interest to a 1st if the loan is conventional and you got the rate from the FHA/VA rate page. And yes, always add 4 points to the stated interest rate when guessing the interest rate for a junior lien. : 4). Yes, because the simultaneousness of the recording a 1st and a 2nd has nothing to do with their respective interest rates. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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