When shopping for a mortgage, it is important to evaluate the total cost of the loan. The annual percentage rate (APR) reflects the total cost of a loan by taking into consideration the interest rate plus any points and fees paid.
See how you can pay your mortgage off faster, and save thousands of dollars in interest, by adding a little to your monthly mortgage payment.
Will you qualify for a loan to buy the home of your dreams? Finding out the income necessary to qualify for a specific mortgage amount will answer your question.
Interest-only mortgages promise low initial payments because borrowers repay none of their debt for the first several years. But payments can soar when the introductory period ends and they must start paying off the principal. Most interest-only loans also come with adjustable interest rates, which usually begin resetting at the same time.
It can be a challenge to determine what is the best mortgage for you. With a 15 year mortgage loan you will pay much less in interest but have to make much larger monthly payments. A 30 year mortgage loan provides lower monthly payments, but doubles the repayment period and increases the total interest paid significantly.
Adjustable rate mortgages involve a trade-off. Initially, the borrower gets a lower interest rate, but must accept the risk that interest rates might rise in the future.
A fixed rate mortgage offers predictable monthly payments for the life of the loan. Adjustable rate and interest-only loans provide lower rates and payments now, but can result in sharply higher payments in future years.
These loans are usually 5 to 10 years long and require borrowers to repay only a fraction of the loan during that time. Although balloon loans are often easier to qualify for than a traditional 30 year mortgage loan, and charge lower interest rates, there is a catch. When a balloon mortgage ends, borrowers must payoff the remaining balance, usually by refinancing or selling the home.
Fixed rate mortgages offer a set interest rate and predictable monthly payment for the life of the loan. Interest only loans are very different, often featuring an interest rate that will change in the future, as well as requiring the eventual repayment of the principal. This can result in very high payments in the future.
Knowing how much you can afford to borrow is an important piece of information during the home shopping process. The size of mortgage you can afford depends on factors such as interest rates, your current income and monthly debt payments.
Refinancing your mortgage can generate significant interest savings, but it costs money up front. Finding out whether a mortgage refinancing makes sense for you is your first step.
A home equity line of credit lets you decide how much, or how little, of your debt to repay each month. This calculator lets you create a repayment plan that fits your needs and budget.
Buying a home entails more costs than what is reflected in your monthly mortgage payment. For some, buying is the right answer, but for others, renting is the way to go. Considering all of the costs and tax implications will lead to a better decision.
The power of compounding is the magic that can turn small, regular investments into a substantial pile of money over time. Investing early and often are the keys to building wealth.
How much do you need for the down payment on a house, your kid’s college education or retirement? Set a goal and this calculator will show how much you must set aside each month to achieve it. Click “View Report” for detailed information about your plan, and how to tell if you’re on track.
Comparing interest rates and compounding methods on different CDs can be confusing. The annualized percentage yield (APY) takes both into consideration and makes comparison much easier. Determining the interest earnings from a particular CD is helpful in evaluating potential investments.
CD investors may be reluctant to invest too much money at one time, especially if better interest rates may be available later. Fortunately, a CD ladder is a great solution because it involves diversifying among a range of different maturity dates. The investor benefits by maintaining regular access to money, while obtaining the higher yields available on longer maturities.
Here’s what it takes to build a seven-figure nest egg by the time you’re 65. You’ll find that the first $100,000 is the toughest. But your balance will soar as you near retirement. If you’re a little short of the million mark, hit the “View Report” button for suggestions on how to build your wealth a little more quickly.
You’ll manage your money more wisely if you know what you’re spending it on. Enter your monthly income and expenditures into this calculator to see exactly how much you have and where it’s going.
Your net worth is the value of all your assets, minus the total of all your liabilities. Think of it as your financial score in the game of life and a great way to track your financial progress. Don’t despair if you have a negative net worth right now because of student loans or credit card debt. As long as that deficit is shrinking, you’re on the right track.
Calculate how much you’ll need to retire comfortably, with a reasonable monthly income. Then see how much you need to save each month between now and when you stop working to achieve that. You can include Social Security, or not. It’s up to you.
A 401(k) plan is the best way to save for retirement. You’ll get significant tax breaks and many employers will match all or part of your contributions. That’s as good as getting a raise. Use this calculator to see how you can benefit by building a substantial nest egg.
Individual Retirement Accounts are a great way to save. Traditional IRAs allow you to defer taxes on contributions and earnings until you retire, when you’ll probably be in a lower tax bracket than when you’re working. This calculator shows how your savings can grow more quickly in an IRA than a taxable account.
You’ll manage your money more wisely if you know what you’re spending it on. Enter your monthly income and expenditures into this calculator to see exactly how much you have and where it’s going. Click the “view report” button to compare your spending pattern with our targets, which can help identify areas for improvement.
Roth IRAs are the best type of Individual Retirement Accounts. Although contributions aren’t tax deductible, as they are with traditional IRAs, the earnings in your account are never taxed. That’s a huge advantage. Use this calculator to see how your savings can grow more quickly in a Roth IRA than a taxable account.
Credit Card Calculators
Paying off credit card debt requires a lot of discipline and a good strategy. Pull together any funds you can to accelerate your debt repayment. Pay off your highest interest rate debt first, and when that balance is paid in full, apply the extra payment amount to the card with the next highest interest rate. By making the same monthly payment even as your debt diminishes, you will drastically reduce the total interest costs and the amount of time to repay the debt.
If you’re only making the minimum monthly payment on your credit cards it will take a long time to eliminate those debts and you’ll pay a fortune in interest along the way. This calculator will show you how long and how much you would pay in total.
Moving your debt from high-interest to low-interest accounts can save a lot of money. This calculator will figure out the best way to distribute your debt among your credit cards.
Start by calculating how much you can save each month by consolidating your high-cost debt into a single less expensive loan. Then see how quickly you can pay it all off by adding some of that savings to your monthly payment.
This calculator applies two simple principles for getting out of debt more quickly. Start by seeing how much you can save by consolidating your student loans. Then apply that savings to credit cards, auto loans and other high-cost debt to pay them off more quickly.
Monthly payment requirements can vary, depending on whether you have a fixed term loan or a line of credit that permits much smaller payments.
If you need to determine how much you can borrow for a specific monthly payment, or what the monthly payments will be on a specific loan amount. This amortizing loan calculator can help you answer these questions. These are important factors to understand so you take out a loan you can truly afford.
Buying a new car without busting the household budget is a real struggle. A good first step is to determine how much you can afford, both in terms of a monthly payment and the price of car you can afford.
The decision to lease or buy a car boils down to more than monthly payments. Determining the total net cost of either alternative will help you determine which is the better value.
The low, promotional interest rates offered by many dealer finance companies and other lenders can lead to tremendous savings on your next vehicle purchase.
Automakers often offer buyers the choice between a cash rebate or cut-rate loan. This calculator lets you compare the savings and find the best deal.
Before you start paying down your debts, you first need to start by figuring out how much you owe on auto loans, credit cards, and other obligations and create a debt repayment plan. Use the calculator below to get started, it will help you understand your debts and make better payment decisions.
You can save hundreds, if not thousands, of dollars on interest by adding a little extra to your monthly car payment. The longer your loan, the greater the benefit. Our report will give you a complete amortization schedule.
Maybe you are struggling to juggle your many different debt obligations. Perhaps a debt consolidation is in order. Consolidating your debt can reduce your payments and your total interest costs.
The low, promotional interest rates offered by many dealer finance companies and other lenders can lead to tremendous savings on your next vehicle purchase. Lower interest rates mean lower monthly payments and lower total interest costs.