Posted by Scott(CA) on October 04, 2005 at 16:42:36:
I’d love to lend you money at that rate! In your example, it should be 12% PER YEAR, not per month.
Try .12/12*50000 = $500 per month (interest only)
Some HML’s will also charge points and may have a prepayment penalty. 1 point would be equal to one percent of the entire loan amount. Assuming you had to pay points, you would be paying an additional $500 per point (for your example).