- Loan amount
- Total dollar amount of your loan or line of credit.
- Interest rate (APR)
- The annual percentage rate for this loan or line of credit.
- Monthly payment
- This is the monthly payment for this loan or line of credit. For lines of credit the payment can change month to month based on the current outstanding balance. This is the case with a line payment calculated on the amount of interest owed or as a percentage of the principal balance.
- Term in months
- Number of months for this loan or line of credit.
- Federal tax rate
- The marginal federal tax rate you expect to pay.
- State tax rate
- The marginal state tax rate you expect to pay.
- Payment options
- Payment options for your loan or line of credit. Each option uses a different method to calculate your monthly payment. Please note that only the Fixed rate term will pay off your balance by the end of the payment term.
- Fixed rate term: Traditional amortization produces a fixed monthly payment. The monthly payment calculated will leave a zero balance at the end of the loan's term.
- 2%, 1.5% or 1% of balance: Your minimum payment is calculated as a percentage of the outstanding principal balance. Your minimum payment will change each month, and if you only make the minimum payment your balance will not be zero at the end of your loan's term.
- 100% of interest owed: For lines paying interest owed, your payment is 100% of the interest accrued during the month but no principal. Your payment may not be fixed if your interest rate or principal balance changes.
- Tax savings
- Tax savings assumes that you qualify for a home interest deduction and that you itemize your taxes on schedule A of your Federal tax return. Total tax savings may be less for higher incomes which have their allowable itemized deductions phased out. Your total tax savings may also be reduced if you prepay your loan.
