# Loan Amortization Calculators

## Calculators Explained

Credit Card Minimum Payment Calculator - Many people are trapped in the minimum payment conundrum, especially people who have balances of \$1,000 or more. This is a very dangerous cycle that all borrowers should get out of as quickly as possible. One thing that will help you understand the impact of paying interest on credit cards is to use our payoff goal calculator. You can plan your monthly payments based on when you would like your card to be completely paid in full. You can also use the payoff calculator as a general debt consolidation calculator, to determine how long it will take you to pay off your debt. In the credit card balance field, just use a total of all your debts, and an approximate average annual percentage rate (APR). Read our complete article, make a few calculations of your own, and see how much money banks are charging you to borrow money.

How Much Will My Monthly Payments Be? When you speak to a mortgage professional about a new home loan, interest rates will certainly be discussed. You may talk about several different options. For example a fixed rate mortgage might be 6%, whereas there may be adjustable rate mortgages at 5%, 4.5% and even 1%. You will need to decide which program is best for you and the amount of time you’ll be in the home; then you’ll want to see exactly how much the mortgage payment will be. The nice thing about this calculator is that it takes escrows into account. So, assuming you’ll pay your insurance and taxes in your mortgage payment, simply add those to the fields provided, and you’ll see the various payment options you have.

Mortgage Principal Calculator The great thing about the mortgage principal calculator is that it shows you exactly how much money you’re paying the lender in interest over a specific amount of time. Learning how much you’re actually paying on the principal balance of your mortgage can be an eye-opening lesson. So, if you have had your loan for three years, simply type in your total loan amount, the term, the interest rate and the amount of months you’ve paid thus far. Click “Calculate,” and you’ll learn just how much interest you’ve paid and how much you’ve cut into your principal loan. This calculator will likely make you want to pay more on your principal, so you ultimately pay your lender less.

Mortgage Length Calculator This calculator will help you to determine your savings if you make larger monthly payments. You can increase the equity in your home faster if you pay down the mortgage sooner. So, if you have a certain amount you want to pay on your mortgage each month, you can calculate how long it will take to pay off your mortgage, and you can determine exactly what your savings will be in the long run.

What if I Pay More Every Month? The best method for paying a mortgage off more quickly is to add money to the principal balance each month. Some people believe they should just take a shorter term, but there are a few problems with this – mainly, that you are always locked into that higher payment. If you have a \$1,000 payment, and you want to apply \$50 more to the principal, this will cut your mortgage term and save you thousands in interest. Just fill in all the fields on the calculator; then add an extra amount you believe you can apply to the principal mortgage each month, and calculate. You’ll see how much interest you’ll save and how much you shorten the pay-off time of your mortgage. Play with different numbers; it’s a lot of fun.

Payment per Thousand Financed This calculator is helpful in giving you an idea of how much house you can afford. If you are looking in neighborhoods where homes sell for \$250,000, you’ll want to see what the going interest rates are and what you’ll pay in points and originations fees (these are mortgage closing costs). Knowing this amount per thousand financed at a specific rate will help you create instant calculations when you’re out shopping for a new home.

What is The Real APR for That Loan? In the mortgage business, APR stands for Annual Percentage Rate. This is a figure that tells a borrower how much the loan is costing annually, including the amount borrowed and the closing costs. Once you’ve decided on a loan amount and an interest rate, find out all of the costs, such as origination fee and mortgage and lender fees. Add these to the fields on the APR calculator, and you’ll see that your interest rate goes up slightly, in most cases, because your costs are factored into the monthly payment. If the difference in your actual interest rate and your APR are considerable, you may be paying too much for the loan.

Affordability Calculator The affordability calculator is one of the most important calculators you can use, when applying for a mortgage. This calculator helps you decide exactly how much you can afford to pay for a home, based on interest rate and term and, more importantly, how much you make and how much you owe monthly. You’ll be asked for front-end and back-end ratios. Front end estimates the difference in your gross monthly income and the amount of your new monthly mortgage payment, so use the mortgage payment calculator first. The back end estimates the difference in your gross monthly income and all other debt, such as credit cards, cars, and other revolving debts that might show up on a credit report. Once you’ve filled in all fields, and you click “Calculate,” this calculator will show you how much of a loan you can get in most scenarios. You’ll probably want to print this data to share with your lender.

Tax Benefits Calculator Renters are often told that they are missing out on all the wonderful tax benefits of owning a home. This tax benefits calculator demonstrates exactly how much you’ll save over a specific number of years that you supply, as well as how much you’ll save over the life of your loan.

Should I Refinance My Loan? Is your old APR (Annual Percentage Rate) too high? Estimate the benefits of refinancing using this calculator. When mortgage interest rates fluctuate or when people decide they’ll be in a home longer than expected, this is the time to consider refinancing a mortgage. This calculator will show you if refinancing, based on your new program and rate, is a good move. You enter your current mortgage figures and compare these with your new interest rate and term. The calculator will show you monthly savings, as well as tax savings. The bottom line gives you a very useful, specific Total Benefit.

Should I Pay Points to Lower My Interest Rate? This calculator gives you a detailed picture of the value of paying points to lower a mortgage interest rate. For example, a lender might offer a 4.75% interest rate, but if you pay 1% of the loan amount, your rate decreases to 4.125%. The key to this decision is the amount you’ll pay for the new rate versus the total savings you’ll receive. This is always dependent on how many years you’ll stay in the home. This calculator provides all of the data for you to make this decision.

Should I use HELOC to Lower My Debt Payments? This calculator allows you to total you monthly payments on bills you might want to eliminate, such as high-interest credit cards. It shows you how you might save in both real dollars and tax dollars if you pay off these debts with a HELOC or Home Equity Line of Credit. Just enter the fields, and click calculate.

How Much Income do I Need in order to qualify? Too often, people buy more house than they can afford. If you couple this calculator with the Affordability Calculator, you'll know exactly what you can afford, as well as what the bank will require you to have to qualify for the loan. Remember, front-end ratio is your new house payment divided by your total gross monthly income. Back-end ratio is all of your monthly debts combined, divided by your total gross monthly income. Once you know what the bank requires, be sure you can afford it, based on your own calculations of affordability. Keep in mind, if you have poor credit or no credit established at all, the bank will likely require a larger down payment, and/or a higher interest rate. So take that into consideration when you are making your calculations.

What is Better: take a Second Loan or Pay PMI? Private Mortgage Insurance (PMI) is required on most loans when your loan-to-value is higher than 80 percent. For example, if you purchase a home for \$100,000 and your down payment is \$10,000, your loan-to-value is 90 percent, as your loan amount will be \$90,000. So, the lender takes insurance until you have a bigger interest in your home, and you pay the premium. One way to get around PMI is to take a second mortgage at the same time you take the first. This calculator allows you to analyze the benefits or pitfalls of doing this.

Interest-Only Calculator Interest-only mortgages are calculated much like some home equity lines of credit. You pay only the interest on the mortgage, leaving the principal balance intact. It's possible to save big dollars on your monthly mortgage payment using this loan program. Fill in the fields on the interest-only calculator and you'll quickly see how much you'll save each month.

Interest-Only with Additional Payments Calculator This calculator allows you to see how you can save money each month and still reduce the principal balance on your mortgage. You decide how much you can afford to add each month. Fill in the fields on the calculator to see how quickly your mortgage is reduced, while you still save over a standard, fully-amortized home loan.

Which Loan is Better? Can't decide which loan offer is better? This calculator allows you to compare the same loan amount with different circumstances, like points on one and not another, different terms and different origination fees. This is fun mortgage calculator to play with, as you can really size up what is best for you. Read more about how to use this calculator and how to decide which loan is best.

Standard vs. Bi-Weekly Paying your mortgage bi-weekly, instead of monthly, is a common technique for eliminating your mortgage early and saving thousands of dollars in interest. By paying bi-weekly, you create one additional payment toward your principal mortgage each year. Fill in the fields on this calculator, and you'll see how much the bi-weekly payment will be and how this will affect your mortgage.

Rent vs. Buy Are you struggling with deciding whether or not to continue renting a home or to go ahead and buy? A great calculator for seeing the benefits of home ownership. You can enter all the pertinent information, such as taxes and insurance, which you won't pay as a renter, but you'll see how you earn these back in tax savings. A great mortgage calculator for anyone considering giving up renting in favor of home ownership.