![]() Let’s take another look at that $320,000 loan. (Interest rates on 15-year mortgages are nearly always lower than those on 30-year mortgages.) Why should I pay off my mortgage early? What if you decided on a 15-year mortgage at 5.9 percent? Your monthly payment would rise to $2,683, but you’d pay $162,956, in interest over the loan - a savings of $252,779 in interest costs, compared with the 30-year mortgage discussed above. For example, the principal and interest for a $320,000 loan at 6.6 percent would be $2,044. If you’re thinking of refinancing your mortgage or considering your options for a new mortgage, the calculator can help you with that, too. If you start paying additional principal, you’ll save a lot of money in interest over the life of the loan. Mortgage interest is amortized so that you pay the bulk of your interest in the first years of your mortgage. (You can get current rates from mortgage giant Freddie Mac.) During that time you’ll pay $320,000 in principal plus another $415,734 in interest, for a total $735,734. Let’s say you borrow $320,000 for your home at 6.6 percent. ![]() The AARP mortgage calculator can help you do just that.Īt some point at a mortgage closing, you’ll have to sign a statement saying that you understand the amount of money you’ll be paying to the bank over time. Ideally, you’d like to get rid of the debt as quickly as possible while building up the amount of money you have invested in the home. In addition, you’ll receive an in-depth schedule that describes how much you’ll pay towards principal and interest each month and how much outstanding principal balance you’ll have each month during the life of the loan.How does the mortgage payment calculator work?įor most people, a house is their largest investment and a mortgage is their largest debt. The calculator will tell you what your monthly payment will be and how much you’ll pay in interest over the life of the loan. You can also add extra monthly payments if you anticipate adding extra payments during the life of the loan. To use the calculator, input your mortgage amount, your mortgage term (in months or years), and your interest rate. Figure out how much equity you have in your home.See how much interest you have paid over the life of the mortgage, or during a particular year, though this may vary based on when the lender receives your payments. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |