This calculator will help you compare the total cost of any two loans. For example, you could consider the benefit of paying extra points to reduce your interest rate, or choosing a fixed instead of a variable rate loan. . Simply enter the desired values for each loan and press compute to see the results. The comparison will assume a worst case scenario. For adjustable rate loans, rates will increase the maximum amount each time the loan re-prices, until it reaches the anticipated rate cap.
This analysis includes the effect of a tax deduction for interest. If the interest is not deductible, or if you do not want to show the effect of the tax deduction, choose an income tax rate of zero.
Both Loans
Loan amount: $
Your Income tax rate: %
Loan1
Loan2
Down Payment:
$
$
Number Of Payments:
Payment Frequency(Months):
Interest rate:
%
%
Points:
Other Fees:
$
$
Fixed or Adjustable:
Repricing Interval:
$
$
Repricing Rate Adjustment:
%
%
Anticipated rate Cap:
$
$
Totals:
Loan 1 Loan 2 Difference
Payment Amount $ 658.60 $ 658.60 $ 0.00
Points and Fees $ 0.00 $ 0.00 $ 0.00
Total Payments $ 237,096.49 $ 237,096.49 $ 0.00
After Tax Savings ? $ 198,709.47 $ 198,709.47 $ 0.00
Cost of all payments today discounted at 5% ?
Present Value $ 114,109.11 $ 114,109.11 $ 0.00