Which Loan is Better? This calculator simplifies the decision making process when it comes to selecting a mortgage. With a few key entries from you, it is able set up a chart for two separate loans. It enables a quick comparison of the monthly payments, as well as the total monthly payments, of two mortgages at a time. Additionally, it displays the savings for the loan that has the lower total for monthly payments.
This handy device makes it easy for the homeowner to quickly determine the amount of money he or she can save with one mortgage over another. It allows for a quick analysis of the size of the monthly payment and the overall cost of the mortgage, leading to a quicker resolution of the "which loan do I get" dilemma.
You can also use this calculator to see how much lower your monthly payment will be if you lengthen the term of the loan. Typically, the interest rate is slightly higher with the longer term loans, such as the 30-year term. Additionally, the amount of total interest spent with a longer term will be a bit higher. However, for some homeowners, the flexibility of a smaller monthly payment far outweighs the difference in overall cost.
Also, this calculator allows for the comparison of different principal balances, interest rates, number of points, and closing costs. The flexibility allows you to play around with your options in search of the best case scenario for your financial situation.
Calculator Legend
- Amount: Enter the total amount of money that will be included in the loan amount.
- Interest Rate: Enter the rate of interest that is charged with the loan as a percentage.
- Length: Enter the number of years that you are planning to hold the loan.
- Points: Enter the number of points that you are charged to acquire the loan.
- Origination Fees: Enter the amount the lender charges for the processing of the loan.
- Closing Costs: Enter the total amount of all closing costs that will be charged at the time of settlement or closing of the loan.
DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.
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