| This calculator allows you to do some interesting comparison of loans. You can compare loans with different balances, rates and payments and see how much interest you save as the loan progresses. This is good for comparing loans for a refinance to see how long it will take to recoup closing costs. For each loan I also have payment buttons that will calculate the standard 30 and 15 year payments for any loan. For an existing loan first put your original loan amount and rate in the first two fields for loan #1, and then hit which term you specified in your original loan or enter your current principal and interest payment (do NOT include property tax and insurance escrow amount). You can then go back and change the balance to your current balance or any amount you want. To compare the two loans I also highlight which column makes you the most money, either refinancing and compounding your monthly savings (ATCCS), or not refinancing and taking the closing costs and investing those (CCC). The point when ATCCS surpasses CCC is the point at which the refinancing starts saving you real money. Note that in some cases there is a period where refinancing saves money for a while, but then after a while later, it costs more! |