Question for the Money Doctors

Question submitted on Dec 22, 2021.

Question

where can I find interest only calculator for HELOC & LINE OF CEDIT please. Thank you for your great website

Answer

There are a bunch of interest only calculators online, google "interest only calculator".  Another way to determine how much interest you are paying for your loan is to add up all the payments you made on your loan and subtract the initial principal from that amount.  For instance, suppose you had a 10 year loan at 5%.  Your loan payment would be $1060.66/mth and you would have to pay that for 120 months.  So the total you are paying is $127,279 in interest and principal payments (120 X $1060.66).  Subtract your initial principal of $100,000 and the total interest you paid over the life of the loan was $27,279.  

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