Taking on a new loan can be a tiring experience, but it does not have to be. Be prepared when you talk to lenders. Know what terms you can accept and which are beyond your means. An amortization chart can help you know what kind of loan will fit into your budget. This type of chart allows you to enter your income and outgoing payments in order to see what kind of repayment schedule will fit you best. Enter your information into our amortization chart to get an estimate on your monthly payments and fill out our free short form to contact up to four lenders about your mortgage.
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Hear is an example of the information you would be able to get using an amortization chart. If you are buying a home priced at $162,000 and you are paying $12,000 down, the principal balance of your loan will be $150,000. At 7% interest, you will wind up with a monthly payment of $997 and an average monthly interest of $581. The interest paid in the first year will be $9,584, and the total interest paid over the life of the loan will be $209,263. However, if you adjust the information entered (for example, if you change the interest rate to 5% or the down payment to $6,000) the estimated monthly payments and accrued interest will be altered dramatically.
Amortization charts can help you with other decisions as well. When you set up your loan repayment schedule, you can schedule in an extra payment each year. To you, one extra payment yearly may either sound like a small amount or far too much strain to put on your finances. An amortization chart can help you see whether or not one extra payment yearly will be worth the stress of paying out extra money. One extra yearly payment on the loan used above will change the average monthly interest from $581 to $444 and the total interest paid over the life of the loan from $209,263 to $160,025. Be careful; if you do not schedule in an extra payment at the start of your loan, you may be subject to prepayment fees if you pay off your loan before the expected date.
Amortization charts generally allow you to enter in the amount of your loan, the amount of your down payment, and your interest rate percentage. From this information the chart will provide you will your monthly payment. Many amortization charts will also give you the total, yearly and monthly amounts you will pay as a result of your interest rate.