Calculator


	Loan amount ($):
	Interest rate (%):
	Term (years):
	Additional monthly payment ($):

	Monthly payment ($):
	Total interest ($):
	Average monthly interest ($):
	Number of years:

A note about loans

As you probably know, there are thousands of
different types of loans available from many
lenders now. There are loans to fit nearly every
budget, including loans with very little or even zero
down payment. Please consult a professional
loan officer or a mortgage broker when shopping
for a loan.

As your real estate agent, I can give you
information about loans, help you understand
them, but only a loan officer or a mortgage broker
can actually arrange a loan for you.

Please take a look at loan comparison
below. *

Adjustable-rate mortgages (ARMs)

Advantages
• Lower rates and payments in the early stages of
a loan term. Easier for a borrower to qualify for
larger loan.
• Borrowers can take advantage of falling rates
without refinancing.
• Good for borrowers who don't plan to stay in one
place for a long time, or for short-term investment.

Disadvantages
• Rates and payments can rise significantly over
the life of the loan.
• Difficult to understand. Margins, caps, adjustment
indexes and other things, might be confusing to a
borrower.
• In ARMs with negative amortization, your loan
balance actually goes up, not down.

Fixed-rate mortgages

Advantages
• Rates and payments remain constant.
• Stability makes budgeting easier.
• Simple to understand.

Disadvantages
• To take advantage of falling rates, you'll have to
refinance, which takes time and a few thousand
dollars in closing costs.
• Can be too expensive for some borrowers,
especially in high-rate environment.
• Virtually identical from lender to lender. ARMs can
be customized for individual borrowers, while most
fixed-rate mortgages can't.