Compute
your payment
(amortization
schedule)
Compute
your payment
(amortization
schedule)
Want to know what your payments will be ?
Do not use dollar signs ($), per cent signs (%), or commas (,) in the input boxes.
First Example
$150,000 ; 40 years ; interest rate of 7.625%.
Entering these figures, we see the monthly payment is $1,000.99.
The column titled "you own", is the plain English term for "equity".
Now look at the 20 year line - halfway through the loan - you'd think you'd own half of your
house ? No - far from it actually!
In those 20 years you have paid $240,237.71 (the interest portion of this is a whopping
$213,322.36) and so "you actually own" (OR your equity) is $26,915.35.
After all that time and money you own roughly 18% of your house !
Also, when the final payment is made, you have spent $480,475.43 to buy a $150,000
house!
If the length of the mortgage is changed to 30 years
we get a monthly payment of $1,061.69.
The loan is 10 years (or 25%) shorter yet the monthly payment increases by only about 6%
or $60.70.
After the final payment, you have spent $382,208.62 to buy the $150,000 house.
Compare this to the 40 year mortgage example. Although 40 year mortgages aren't too common,
you can see that they should be avoided because the 30 year mortgage has all the advantages.
After 15 years (the halfway point) your equity is $36,344.43, about 24% of the house. As you can see, equity increases very slowly in the first 2/3 of the time of the loan.
We'll waive the application fee when you apply online, and begin researching loan products that are right for YOU!
