If your loan amount is $150,000, your interest rate is 7%, and your term is 30 years, a loan payment calculator will show you that your monthly payments will be $997, which is $351 less than the same loan with the 15 year term. The lower monthly payment may sound closer to what you want to pay, but a longer term does have its disadvantages. The total interest of the 15 year term, $92,683, will be more than double with a 30 year term at $209,263. Though you pay less monthly, ultimately, with the 30 year term, you will pay over $100,000 for the same loan. Which loan suits you best depends on whether or not you need to look at focus on the present, or are able to plan for the bigger picture. Using a loan payment calculator can help you decide which category you fall in.
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The information provided by loan payment calculators is estimated, so you should rely primarily on the figures given by your lender. Small discrepancies between your repayment schedule and the information provided by a loan payment calculator are usually due to missed payments or because our calculator processes fractions of a penny differently than your lender.
A loan payment calculator can help you prepare for your new loan. Knowing how possible terms will affect your loan, and knowing your future monthly payments will go a long way in keeping you from being overwhelmed by the loan repayment process. Use our calculator to play with the terms of your loan and find the type of loan that suits you best. Being armed with this kind of knowledge can help you from taking on a loan that you will regret and will save you the trouble of refinancing in five years to get the loan terms that you really want. Find the loan you want today. Use our loan payment calculator to learn more about the loan that fits you or apply online to contact up to four lenders about your loan.
You can also use a loan payment calculator to make sure that the terms given to you by your lender will not cause negative amortization. Negative amortization occurs when a lender sets the monthly payment of your loan too low to cover the cost of interest, causing your principal to increase as you repayment period goes when it should be decreasing. Though this does not happen often and in most cases only with unscrupulous lenders, it is always good to do your own research.