http://www.quickenloans.com/calculator
Ever wonder how much interest you pay over the life of your mortgage? Ever wonder how much an interest rate affects how much money you pay over the life of your mortgage? Ever wondered how much you could save it you made extra payments on your mortgage?
Well, wonder no more!
With Quicken Loans new mortgage amortization calculator, you can get all of this great information in just seconds.
Here’s how our mortgage amortization calculator works:
Step 1:
Go to http://www.quickenloans.com/calculator
Step 2:
Enter your current (or desired) loan amount, choose a term of 15 or 30 years, enter your desired interest rate (such as 4%), choose your state and then hit the Calculate button
Step 3:
In a few seconds we’ll show you a chart that shows your interest and principal payments over the life of your loan. The gold area are your interest payments, and the red area your principal payments. You can see how much of both you pay at any time during you loan. Plus you’ll see every month’s individual payment explained below the graph.
Pretty cool, huh? You haven’t seen anything yet.
This is where it gets interesting.
Step 4:
Go back to your inputs and add an extra payment. You’ll be surprised how it changes your results. In this example we’ll pick an extra annual payment that’s exactly the same as the monthly payment. So, basically, you’re paying 13 mortgage payments a year instead of 12. If you did this, you’d save over $23,000 in interest and have 51 less months of payments! You can change the extra payment to be a one-time only payment or even a monthly payment. Play around with the numbers. You’ll be shocked at how even making an extra $50 payment each month toward your principal can change your numbers over the life of your loan. Paying a little extra now is like investing in your future. You’ll have more money later to enjoy life — and isn’t that what it’s all about?
Now here’s the best part of all. We’re about to find out how lower interest rates allow you to pay tens of thousands of dollars less on interest.
Step 5:
Once again, let’s go back to our inputs, but now let’s change our mortgage rate. Keeping our same numbers, let’s try a different rate. How about 7%? Wow. The monthly payment on a 200k mortgage at 7% is $1,330.60. Compare that to the 4% payment we just saw that was $985. Same loan amount. Just a different rate. It’s amazing how much the rate can affect your monthly payment. Let’s really get crazy now and put in the rate that was available in 1980. 18%. I’m almost afraid to see the results.
Oh my. The payment on a $200,000 mortgage at 18% is over $3,000. Let’s put this one to bed forever and be very grateful we’re not living in 1980.
Try some other rates at your leisure. Put any number in you want. 4.25, 9.99, whatever.
It’s really interesting to see, in one place, how much your rate will affect what you pay for your mortgage, both monthly and overall. This hopefully shows why refinancing to a lower rate is such a smart idea. If you can refinance and lower your payment just $50 a month, you could actually take the $50 and put in back in your mortgage as an extra payment (as we did in step 4) and potentially save yourself thousands in interest!
That’s it. Hope you enjoy the Quicken Loans mortgage amortization calculator as much as we do. Use it to help plan your refinance or your next home purchase. The more you know about your mortgage, the better decision you’ll make when you’re ready to move forward.
Thanks for spending your time with us. Have a great day!
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Technorati Tags: home loan, Home Loan Calculator, Home Loans, mortgage, mortgage calculator, Mortgage Payment, Mortgage Payments, mortgages, Quicken Loans
Your search for the perfect mortgage calculator app is over. This one has it all!
After many years as a mortgage loan originator here in Fort Wayne, IN, I was continually frustrated by how difficult it was to quickly give a Realtor or a home buyer an accurate estimate of the money they would need for closing. Sure, we all have access to mortgage payment calculators, but that won’t tell you how much you’ll need for closing, the difference between lender-paid closing costs, interest rates, etc. Furthermore, I could not easily email or print out samples from a mortgage payment calculator.
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