| Loan amount owed |
Loan amount owed is the total
remaining balance on a loan. If you are uncertain of your
exact balance, enter an estimate that is as close as possible
|
| Loan payment |
The payment amount is your
current monthly payment. |
| Loan months Left |
The number of months you have
left to make payments on a loan. |
| Credit card balance |
The outstanding balance on
your credit card. You do not need to include finance charges,
they will be calculated based on your interest rate. |
| Credit card rate |
Annual interest rate you pay
on outstanding credit card balances. This calculator assumes
simple interest is charged every month at 1/12th of your
annual rate. |
| Credit card payment |
Credit card payments are based
on your outstanding balance and annual interest rate.
For this loan comparison, the monthly payment is the amount
required to pay off your credit card in same number of
months as your consolidation loan. Your actual credit
card payment may be lower, but will often require many
more payments. |
| Interest rate |
Annual interest rate for your
new consolidation loan. |
| Term in months |
Number of months for your new
consolidation loan |
| Up front costs |
Any fees you are required to
pay up front to receive this loan. This could include
appraisal fees, loan origination fees, etc. |
| Points |
Number of points paid to for
this loan. Points are usually only paid for home equity
loans. |
| Rate earned on savings |
This is the rate you would
have received if you had put your closing costs into savings.
Enter your short term savings rate. For most people this
is currently 4% to 5% annually. |
| Income tax rate |
This is your combined federal
and state income tax rates. It is used to determine income
tax savings when you use a home equity loan to consolidate
your debt. |
| Loan type |
The two most common loans types,
home equity and personal, differ in fees, rates and tax
deductibility of interest. Home equity loans often have
higher fees, but usually have lower rates and a tax deduction
for interest paid. Personal loans do not have a tax deduction
for interest paid, and have a higher interest rate but
often have lower fees. These are important considerations
when choosing a loan. |
| Include closing costs in
loan |
If you include your closing
costs in your loan, your loan balance, monthly payment
and total interest paid will increase. You will, however,
be required to pay less money up front. Including your
closing costs in your loan may be a good option if you
do not have funds available, or you can achieve a relatively
high rate of return on your savings. |
