How Your Loan Amount Shapes Your Monthly Payments
When you're choosing a homesite, one of the first questions on your mind is probably: What will my monthly payment be?
The answer depends mostly on one thing: the size of your loan. The good news is that the difference between one loan amount and the next is smaller than you might expect. Here's a simple look at how monthly payments change as the loan amount goes up, and how our open contract lets you pay your lot off sooner.
A Few Key Terms to Know
- Loan Amount (Principal): The amount you borrow to buy your lot, after your down payment.
- Interest Rate: The cost of borrowing, shown as a yearly percentage. With a fixed rate, it stays the same for the life of your loan.
- Loan Term: How long you have to pay off your loan. The examples below use 20 years (240 monthly payments).
- Open Contract: A loan you can pay off early, at any time, without any penalties.
Monthly Payments by Loan Amount
The table below shows estimated monthly payments for loans from $60,000 to $145,000, using a 9.9% fixed interest rate and a 20-year term.
| Loan Amount | Monthly Payment | Change from Row Above |
|---|---|---|
| $60,000 | $575.04 | — |
| $70,000 | $670.88 | +$95.84 |
| $80,000 | $766.72 | +$95.84 |
| $90,000 | $862.57 | +$95.84 |
| $100,000 | $958.41 | +$95.84 |
| $110,000 | $1,054.25 | +$95.84 |
| $120,000 | $1,150.09 | +$95.84 |
| $130,000 | $1,245.93 | +$95.84 |
| $140,000 | $1,341.77 | +$95.84 |
| $145,000 | $1,389.69 | +$47.92 |
Example only. Payments shown are principal and interest, and do not include property taxes, escrow or other fees.
What This Means for You
Small steps, small changes. Every $10,000 added to your loan raises your monthly payment by about $96. That's roughly $3.19 a day.
Compare your options. Going from a $60,000 loan to a $100,000 loan adds about $383 to your monthly payment. That can be the difference between a smaller lot and a larger one, a different community, or a corner lot with more room.
Your payment won't change. Because your rate is fixed, your principal and interest payment stays the same from the first month to the last. No surprises.
Pay It Off Sooner with an Open Contract
Every loan with Cayetano is an open contract. That means you can make extra payments toward your principal whenever you want, without any penalties.
Here's why that matters: interest is charged on the balance you still owe. When you lower your balance with an extra payment, you pay less interest every month after that, and more of your regular payment goes toward owning your lot.
Many of our customers do this by putting their Tax Refund towards your principal balance once a year.
Here's what those two habits could do over the life of your loan:
Paying an Extra $100 a Month
| Loan Amount | Paid Off In |
|---|---|
| $60,000 | 13 yrs 5 mo |
| $70,000 | 14 yrs 1 mo |
| $80,000 | 14 yrs 7 mo |
| $90,000 | 15 yrs |
| $100,000 | 15 yrs 4 mo |
| $110,000 | 15 yrs 8 mo |
| $120,000 | 16 yrs |
| $130,000 | 16 yrs 2 mo |
| $140,000 | 16 yrs 5 mo |
| $145,000 | 16 yrs 6 mo |
Putting $2,000 a Year Toward Principal (Like a Tax Refund)
| Loan Amount | Paid Off In |
|---|---|
| $60,000 | 11 yrs 6 mo |
| $70,000 | 12 yrs 1 mo |
| $80,000 | 12 yrs 10 mo |
| $90,000 | 13 yrs 3 mo |
| $100,000 | 13 yrs 9 mo |
| $110,000 | 14 yrs |
| $120,000 | 14 yrs 5 mo |
| $130,000 | 14 yrs 9 mo |
| $140,000 | 15 yrs |
| $145,000 | 15 yrs 1 mo |
Example only, based on a 9.9% fixed rate and a 20-year term. Extra payments are applied to principal; the $2,000 yearly payment is shown at the end of each year.
Even small extra payments add up. Every dollar you put toward principal is a dollar you won't pay interest on again.
Start Building Your Future Today
Whether you're looking at a $60,000 lot or a $145,000 lot, knowing how your payment works helps you choose the homesite that fits your budget and your plans.
We're proud to help hardworking Texans take the first step toward owning land with low down payments, budget-friendly monthly payments, and straightforward owner financing.
Have questions about your loan or making extra payments? Contact your Cayetano Sales Rep or visit www.CayetanoDevelopment.com
Cayetano Development is a Registered Mortgage Loan Originator (RMLO), NMLS # 1667528. Rates, terms and payment amounts shown are examples only and may vary by community and buyer.
