Loan and Credit Card Payoff Calculator and Amortization
Planning for your financial future is easy with our loan and credit card payoff calculator. By entering the outstanding amount, annual interest rate, loan term and loan start date you can determine your loan payoff date when you add an extra yearly payment, or money to your existing monthly payment.
Loan calculator and Amortization [Enter Number]
Secured Loans-What Are They?
A secured loan is a type of loan that is essentially ‘secured’ by an asset, such as an automobile or other property. In the event the borrower defaults on loan payments, the lender has the legal right to seize the property to cover any unpaid balance. Interest rates on secured loans are generally lower because of the security afforded the bank, credit union or finance company from the collateral provided.
In some cases, if your auto is repossessed you may be required to pay what is known as a ‘deficiency balance’. This occurs when the amount the lender receives for your liquidated asset does not completely payoff the balance of the loan. In other circumstances you may be able to redeem the asset, such as an auto by paying the lender the outstanding balance and any related fees for repossession.
Unsecured Loans-What Are They?
An unsecured loan is not secured bya borrower asset such as an automobile, or other property. They are often offered through credit cards or other personal loans. Because there is no collateral that the lender can liquidate in the event that the borrower falls behind in loan payments, unsecured loans carry higher interest rates than secured loans.
What is Balloon Payment
As a way to reduce monthly payments, some lenders make loans with balloon payments. This is a large, lump-sum payment made at the end of the loan term. It is most commonly used for auto loan financing and allows car buyers to purchase more expensive vehicles than they may not have otherwise been able to afford. The drawback to this type of loan is the difficulty some borrowers face in paying the lump-sum amount in its entirety, all at one time.
What is an APR
The term, APR refers to”Annual Percentage Rate”. This directly affects the cost of the loan. Loan offers include the APR, which can be used to compare and shop for financing. Additional fees may also be associated with the loan as well. Some lenders offer credit cards and loans with introductory rates for limited periods of time to entice borrowers to enter into agreements. These can be good financial opportunities if accounts are paid off before higher rates are imposed.
What is the formula for the Loan Payment Calculator?
The loan calculator uses the following formula to calculate loan figures:
Monthly payment = [rate + rate / (1+rate) ^ months-1)] x principal loan amount.
While we make every effort to ensure the accuracy of the loan and credit card payoff calculator tool, we are not liable for damages, whether monetary, incidental, consequential or otherwise in connection with its use. The calculator tool is not intended as a replacement for professional independent financial advice.