Definitions
Credit Card Balance
The outstanding balance on your credit card. You do not need to include finance
charges; they will be calculated based on your interest rate.
Credit Card Payment
Credit card payments are based on your outstanding balance and annual interest
rate. For this loan comparison, the monthly payment is the amount required to
pay off your credit card in the same number of months as your consolidation loan.
Your actual credit card payment may be lower, but will often require many more
payments.
Credit Card Rate
Annual interest rate you pay on outstanding credit card balances. This calculator
assumes simple interest is charged every month at 1/12th of your annual rate.
Include Closing Costs
In Loan
If you include your closing costs in your loan, your loan balance, monthly payment
and total interest paid will increase. You will, however, be required to pay
less money up front. Including your closing costs in your loan may be a good
option if you do not have funds available, or you can achieve a relatively high
rate of return on your savings.
Income Tax Rate
This is your combined federal and state income tax rates. It is used to determine
income tax savings when you use a home equity loan to consolidate your debt.
Interest Rate
Annual interest rate for your new consolidation loan.
Loan Amount Owed
The total remaining balance on a loan. If you are uncertain of your exact balance,
enter an estimate that is as close as possible.
Loan Months Left
Number of months left to make
payments on a loan.
Loan Payment
The payment
amount is your current monthly payment.
Loan Type
The two most common loan types, home equity and personal, differ in fees, rates
and tax deductibility of interest. Home equity loans often have higher fees,
but usually have lower rates and a tax deduction for interest paid. Personal
loans do not have a tax deduction for interest paid, and have a higher interest
rate, but often have lower fees. These are important considerations when choosing
a loan.
Points
Number of points paid for this loan. Points are usually only paid for home equity
loans.
Rate Earned On Savings
This is the rate you would have received if you had put your closing costs into
savings. Enter your short term savings rate.
Term In Months
Number of months for your new consolidation loan.
Up Front Costs
Any fees you are required to pay up front to receive this loan. This could include
appraisal fees, loan origination fees, etc.
Information
and interactive calculators are made available to you as self-help tools
for your independent use and are not intended to provide investment advice.
We can not and do not guarantee their applicability or accuracy regarding
your individual circumstances. All examples are hypothetical and are for
illustrative purposes. We encourage you to seek personalized advice from
qualified professionals, at the credit union or elsewhere, regarding all
personal finance issues.
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