[ Previous Section ] [ Next Section ] |
Step 1 | From the home page, click on the Tools menu. Select Loan Calculator. |
To complete this screen simply follow the steps below. |
Step 2 | Choose the appropriate currency. |
Step 3 | Input the principal amount you intend to borrow. |
Step 4 | Input the anticipated interest rate you'll be charged. |
Step 5 | If appropriate input the loan points. |
For those of you that may be unfamiliar with the term loan points, here is a brief explanation: | |
In financing, lenders usually offer a range of interest rates at different amounts of points. A point equals one percent of the loan amount. For example, 3 points on a $100,000 mortgage loan would add $3,000 to your refinancing charges. Therefore, the more points that are added to the loan, the more interest you are going to pay. |
Step 6 | Next, input the number of payments per year. Use the drop down arrow if necessary to change the number of payments. |
Step 7 | Input the number of years over which you will be repaying the debt. |