$750 x 12 = $9,000I don't know where you live but I were them I'd go see a Mobster (Italian) and get a Juice Loan. The 'vig' would be a whole lot less(1).
$9,000 x 40 = $360,000
$360,000 + $100,000 = $460,000$460,000 / $167,000 = 2.7545
2.7545 is = to 27.545% Interest
And if you fall behind with the Wiseguys they only break your leg. These Service Companies ruin your credit for life.
A broken leg is a better deal.
(1) Prime rate, fed funds, COFI, This week
WSJ Prime Rate: 3.25%
Federal Discount Rate: 0.75%
Fed Funds Rate (Current target rate 0-0.25): 0.25%
11th District Cost of Funds: 1.484%
Your math is wrong. When you do a NPV calculation you will find that this is a 5.08% annual interest rate.
(Present value of $167,000, monthly payments of $750 for 480 months with a $100,000 lump sum payment at the end, results in a monthly interest rate of .4234) Multiply by 12 and this is an annual rate of 5.08
What on earth does that equality sign mean?
The data you site show that the interest rate is 4.894% .
“site” shoud’ve been “cite,” of course. Sorry.
I don’t think you have the foggiest idea what you are talking about. The interest rate is somewhere between 5 and 5.5% on that loan depending on how much was allocated of that payment for pmi and taxes.