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View Full Version : How to cal. breakeven pt. for mortgage loan



w13ng
05-06-09, 10:19
Hi.....anyone can kindly advise in the above mention:). Tks

apple3
05-06-09, 12:41
Hi.....anyone can kindly advise in the above mention:). Tks

Generally, the loan is on monthly or daily rest and thus the amortisation could not be comparable to car loan where outstanding loan matching parf/market value is the typically known as breakeven point.

Even if fix rate is apply, float rate will kick off within the lock down and subsequently, refinance kick off a whole sum again together will new loan period. And private property play in a free market where everything is possible.

Or unless you are referring the breakeven as the period where payment is 50% interest / 50% principal which I will suggest don't bother. You will surpass the lock down by a great margin then.

Alexis
05-06-09, 16:52
I would do it this way:

Add up all the legal fees, stamp duty, maintenance and interest paid thus far. This gives you total expenditure.
If (current market value - purchase price) >= total expenditure, you have broken even. This means that if you sell now, you're not making a loss.

If you have been renting out the unit, you can also factor in the rent collected.


Generally, the loan is on monthly or daily rest and thus the amortisation could not be comparable to car loan where outstanding loan matching parf/market value is the typically known as breakeven point.

Even if fix rate is apply, float rate will kick off within the lock down and subsequently, refinance kick off a whole sum again together will new loan period. And private property play in a free market where everything is possible.

Or unless you are referring the breakeven as the period where payment is 50% interest / 50% principal which I will suggest don't bother. You will surpass the lock down by a great margin then.