How Do You Calculate Total Interest Paid On A Home Equity Loan?
Now that you’ve taken out a home equity loan and are making the payments, you might want to know how much you’re actually paying in interest each month and over the life of the loan. Here’s how to find out. Determine the amount of the loan. The loan amount is also known as the loan principal. It is the actual amount you borrowed before any fees or charges were applied. Find your interest rate. If you have your original loan papers handy, look for your interest rate. If for some reason you cannot find your original papers, contact your bank. You need to have the interest rate in order to calculate the total interest paid on your home equity loan. Write down the repayment terms. In other words, you need to know how many years you have to repay the loan. For calculation purposes, convert the annual figure to a monthly number (i.e., 5 years equals 60 months). Look for a simple-to-use online loan calculator. The easiest way to determine the total interest paid on a home equity loan is to pl
