Rate Calculators

Home Equity Loan Resource’s rate calculators help you crunch the numbers to decide what type of loan will work for you. The mortgage loan calculator lets you see how much you can afford in a home mortgage loan and what your monthly payments will be. The home equity loan rate calculator walks you through the numbers to determine how much your current home equity will allow you to borrow, while the refinance mortgage rate calculator shows you the savings you’ll make by taking advantage of today’s low interest rates. Finally, discover which type of rate -- fixed or adjustable -- works best for you with the interest rate calculator.

One of the major factors in determining your loan payments with any rate calculator is the term of your loan. Most home mortgage loans carry a term of 15-30 years. The longer the term, the lower your payments will be. But you will also pay more in interest over the life of the loan. A shorter-term home mortgage loan builds equity more quickly and pays less in interest over the term, but the monthly payments are higher.

When applying for a home mortgage loan or home equity loan, it is important to understand the concept of amortization. This is the system of repayment built into the loan. Most home equity and mortgage loans are structured so that your early payments are mostly directed to paying down interest instead of the principal (the amount borrowed). This means your building of equity, or actual ownership, develops slowly in the beginning and picks up speed later. But if you are well into your home mortgage loan term, you can cash in that equity for a convenient home equity loan.

FAQs about Home Equity Loans

Q.:	What can I use a home equity loan for?
A.:	Just about anything! Many homeowners choose to put the money back into the house with home improvements or renovations. But others use home equity loans for college tuition, high interest debt consolidation, and even major new purchases.
Q.:	What kind of interest rate will I get?
A.:	While home mortgage loans still carry the lowest interest rates, home equity loan rates are surprisingly low these days, and they are sure to be lower than rates charged on credit card debt or personal loans.
Q.:	How long is a home equity loan term?
A.:	A home equity lender can work with you to find the term that is most appropriate for you. But most home equity loans carry terms of 10-20 years.
Q.:	How do I decide between a home equity loan and a line of credit?
A.:	It depends on what you are using the money for. A home equity line of credit is handy when you are not making a lump sum payment because you don’t pay interest until you have drawn on the credit line. A home equity loan will usually have a fixed home equity loan rate, leaving you less susceptible to market changes, while a credit line usually comes with adjustable-rate interest.
Q.:	How do I know how much I can borrow?
A.:	In addition to typical factors like income and credit rating, home equity lenders will determine the amount you are eligible to borrow based on the equity in your home. This is the difference between the current market value of your home and the outstanding principal on your home mortgage loan.

Home Equity Loans Resource