It is IMPORTANT to note that private loans are usually on a one- or two-year term, at the most. Also, our calculator uses an approximation (annual rate / 12) to obtain the monthly interest rate. This practice commonly used by bankers will yeild a higher effective annual rate while the exact, much more complicated equations, would yeild an exact monthly rate. For the exact formulas see our Ressources page or do a search on the Internet.

Also keep in mind that the above calculations do not include insurance, school and municipal taxes, or any other cost associated with the ownership of the property.