Finance Tools/Loan Calculator
Loan Calculator
Calculate equal payment and equal principal amortization
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Frequently Asked Questions
Equal payment (fixed-rate) loans have the same monthly payment throughout, but early payments are mostly interest. Equal principal loans reduce the principal equally each month, resulting in decreasing total payments over time. Equal principal loans pay less total interest but have higher initial payments.
On a $300,000 30-year mortgage, a 1% difference is significant: at 6% you pay $1,799/month and $647,515 total; at 7% you pay $1,996/month and $718,527 total. That 1% costs an extra $71,012 over the life of the loan—nearly 24% of the original principal.
A 15-year mortgage has higher monthly payments but significantly lower total interest. For $300,000 at 6%: 15-year costs $2,532/month with $155,683 total interest; 30-year costs $1,799/month but $347,515 total interest. Choose based on your monthly budget and long-term savings goals.
Extra payments can dramatically reduce your loan term and total interest. On a $300,000 30-year loan at 6%, adding just $200/month to your payment saves $62,000 in interest and pays off the loan 6 years early. Specify extra payments go toward principal for maximum impact.
Key factors include: credit score (higher scores get lower rates), down payment size (larger down payments reduce risk), loan term (shorter terms often have lower rates), loan type (fixed vs. adjustable), and current market conditions. Improving your credit score by 50 points could save thousands over the loan term.