| Mortgage Down Payment Comparison Calculator | |
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| This calculator compares the benefits of different down payment options. For example, if you have a high interest rate on your savings account, you may want to make a lower down payment and keep the rest of money in the bank collecting interest. For most homebuyers it makes sense to make a higher down payment because it will result in lower monthly payments and less interest paid on the loan.
Note: To change the variables, use the diamond-shaped slider or enter a number in the text box corresponding to the variable you want to change. | ||
| Savings Graph Tab | ||
| Purchase Price | This is the price of the home you wish to purchase. | |
| Loan Rate | This is the interest rate of your current loan. | |
| Loan Term | The loan term is the length of time you have to pay off your loan (e.g., 15 years). | |
| Pay Off Period | The pay off period is the amount of time in which you intend to pay off your loan. For example, you could have a 15-year mortgage, but intend to pay it off in 10 years. If you do not expect to pay off your mortgage early, enter the same number that you used for loan term. | |
| Savings Rate | This is the interest rate you currently receive on your savings account. | |
| Tax Rate | This is your income tax rate. | |
| Low Down Payment | Enter the minimum down payment you intend to make on your new home. | |
| High Down Payment | Enter the maximum down payment you can afford to make on your new home. | |
| After you have entered the details of the loan and down payment options, the calculator will calculate the cost comparison and results for the savings graph on the right side of the calculator. The Savings Graph will display your cumulative savings at the end of each year by using Down Payment 2. Move the diamond-shaped slider for each year's savings. (Note: Negative numbers indicate that Down Payment 1 is the better option.). | ||
| Cost Comparison Tab | ||
| The Cost Comparison tab compares the effects of the down payment options on your Monthly Payments, Tax Benefit, Equity and Total Costs at the end of the Pay Off Period. | ||
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