Keying in your mortgage amount, interest rate, a repayment term into a mortgage calculators will not only give you an estimated monthly payment, but also the amount of interest you will pay over the life of the loan. A $150,000 mortgage, with a 7% interest rate and a 30 year term, will be calculated into a monthly payment of $997. The interest over the life of the loan will equal $209,263. If the monthly payment seems more than affordable and you could afford to pay more, you may want to change to a 15 year term.
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The change in just one variable makes a large difference in the repayment of your loan. The monthly payment on a $150,000 loan with a 7% interest rate and a 30 year term would be increased by $351, from $997 to $1,348 if the loan term was changed to a 15 year term. Also, the total interest over the life of the loan would drop from $209,263 to $92,683. That one change will cost $351 more a monthly but save over $100,000 by the time the loan has been repaid. The loan you choose depends on whether your are most concerned with short term benefits or long term saving.
Shopping for a mortgage can be both exciting and stressful. Leave the frustration out of your experience by learning more about mortgages. There is plenty of information online to help you understand the types of loans available and the terminology that your lender may use. If your lender offers you an adjustable rate mortgage, it would be to your benefit to fully understand how this type of rate is inferior or superior to a fixed rate mortgage. Online glossaries and websites can give you necessary information to protect your interests. Mortgage calculators can also be used as a preparation tool for finding your new mortgage. Mortgage calculators give you an estimated monthly payment and also allow you to toy with possible mortgage terms and rates in order to create a standard for what you are looking for in a loan. Fill out our free short form to contact up to four lenders about your new mortgage or use our mortgage calculator to find out more.
Mortgage calculators only provide estimates, and can differ from the figures provided by your lender as it is possible that your lender may handle fractions of a penny differently than our calculator. However, it is an excellent tool to use to become more knowledgeable of your repayment plan. Use mortgage calculator or apply online to contact a lender about your new mortgage.