To use this calculator, enter the loan amount, interest rate, and loan term. Optionally, include your home's current value, existing mortgage balance, and desired loan-to-value ratio to calculate available equity. Decide whether to include closing costs in the loan amount.
The monthly payment is calculated using the formula: PMT = P * r / (1 - (1 + r)^-n), where P is the loan amount, r is the monthly interest rate, and n is the number of payments. Available Home Equity is calculated as: (Home Value * (LTV / 100)) - Mortgage Balance.
Suppose you want a $150,000 loan at 8% interest over 15 years. Your monthly payment would be approximately $1,432.25. If your home is valued at $300,000 with a $200,000 mortgage balance, your available equity at an 80% LTV is $40,000.
Remember that interest rates and terms can vary based on creditworthiness and lender policies. Always consult with a financial advisor before making significant financial decisions. For more detailed analysis, try our Amortization Calculator and Refinance Calculator.