What is Simple Interest Mortgage?
if(window.yzq_d==null)window.yzq_d=new Object(); window.yzq_d[‘jmYVA9j8Ymo-‘]=’&U=12cis1q28%2fN%3djmYVA9j8Ymo-%2fC%3d-1%2fD%3dLREC%2fB%3d-1%2fV%3d0’; I would select a traditional mortgage. If two loans are exactly the same but one is simple interest, you will pay more interest on it unless you systematically make your monthly payment before the due date. The major difference between a standard mortgage and a simple interest mortgage is that interest is calculated monthly on the first and daily on the second. Consider a 30-year loan for $100,000 with a rate of 6%. The monthly payment would be $599.56 for both the standard and simple interest mortgages. The interest due is calculated differently, however. On the standard mortgage, the 6% is divided by 12, converting it to a monthly rate of .5%. The monthly rate is multiplied by the loan balance at the end of the preceding month to obtain the interest due for the month. In the first month, it is $500. On the simple interest version, the a
