# Loan Calculator

Loan Calculator

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The Loan Calculator may be used for a myriad of purposes. One purpose of the Loan Calculator is that it enables you to calculate the various loan payments and total interest that are demanded on a loan or mortgage, depending upon the interest rate that is offered by the lender. Generally, the leading factor in determining what interest rate you are offered by the lender is your credit score and your credit report.

If you have a credit score in the 700s and a credit report with enables such a score, you will generally be offered a lower interest rate from a lender than a person with a credit score of 600 or 650. A person with a credit score in the 800s will generally be offered a lower interest rate than a person with a credit score in the 700s. Lenders will offer a lower interest rate on a loan to a person with a higher credit score based upon the supposition that a higher credit score indicates a candidate that is more financially responsible, and less likely to default on the offered loan, than a candidate with a comparatively lower credit score.

The can be a dramatic difference in loan payments and total interest paid on a loan based upon varying interest rates. Using the Loan Calculator, if an individual is offered a 30 year mortgage on a home in the amount of \$150,000, at 8% interest, his monthly mortgage payment would be \$1,101.00, and the total interest the borrower would pay the lender would be \$246,233.00. If the individual procures a 30 year mortgage in the amount of \$150,000 at 4% interest, the monthly mortgage payment would be \$716.00 and the total interest the borrower would pay the lender would be \$107,804. .

That is a difference in monthly payments of \$385.00, and the individual paying 8% interest would pay an additional \$138,429.00 over the course of the mortgage. Such is the primary benefit of credit repair.

One can use the Loan Calculator in determining payment and interest on an automobile loan. For example, if the borrower takes a \$25,000 loan at 4% interest for a loan with a duration of five years, the monthly payment would be \$460.00 and the total interest paid would total \$2,525.00. At 8% interest, the monthly payment would be \$507.00 and the total interest paid would total \$5,415.00.

It is not uncommon for persons who procure automobiles from “buy here, pay here” dealerships and secondary lenders to pay interest rates exceeding 18% or more. For the borrower paying 18% interest on an automobile loan with the same five year term, the monthly payment would be \$635.00 and the total interest paid would total \$13,090. The borrower paying 18% interest would pay an additional \$10,465.00 in total interest than the 4% borrower, and the monthly payment would be \$175.00 per month more.

There are other benefits resulting from credit repair, and a healthy credit report and score. One’s credit rating and credit report may affect whether one obtains certain employment, or even what one’s automobile insurance rates. However, the Loan Calculator illustrates what for many may be the most salient benefit of credit repair.