Some calculators can give you even more information. Many even break down the amount of interest and principal for each and every month over the entire repayment period, which can be helpful for anyone looking for a clear, detailed picture of their loan during the amortization process. A loan calculator is also helpful if you are looking into refinancing since it can show you whether or not you will be better off with a new loan in the long run.
A loan calculator can be very useful for anyone looking into loans or refinancing, and is an excellent way to play around with figures to see which loan terms suit you best. Find out more about the loan best loan terms for you using our loan calculator to or fill out our free short form to contact a lender about your loan.
The most important function of a loan calculator is to give you an estimate of your monthly payments. This function is fairly simply. Take for example a loan amount of 150,000 with an interest rate of 7% and a repayment term of 15 years. The calculator would give you an estimated monthly payment of $1,348. If a monthly payment over one thousand dollars is too high, you can change the length of the loan to see if a longer repayment period will make the loan more affordable. With a 30 year term, the monthly payment decreases by $351 to $997.
Loan calculators can also give you an estimate on the amount you will pay in interest over the life of the loan. On a 15 year loan you will pay a total of $92,683 in interest. On a 30 year term the total amount of interest would be $209,263. The 30 year loan term accrues more than twice the amount of interest as the 15 year loan. This shows that a homeowner who can afford the to pay the higher monthly payment should definitely choose the shorter loan term.