Easily calculate the actual cost of your mortgage interest rate! Stephanie shares how she quickly calculates the actual cost of your mortgage interest rate for the life of the loan and how it affects your monthly payments.
Do you ever wonder what the difference between 3.5% and 5% financing will actually cost you? When it comes to big purchases, like a home loan, that 1.5% can be thousands of dollars!
In this video Stephanie shows us how she uses the Qualifier Plus IIIfx Desktop PRO Real Estate Mortgage Finance Calculator in the mortgage lending process to find the right loan and quickly calculate what the actual cost of a mortgage interest rate will be for her clients.
Qualifier Plus IIIfx Desktop PRO Real Estate Mortgage Finance Calculator Link: https://amzn.to/3gCHPgd
Hi guys, Stephanie Weeks here.
Thank you so much for tuning in to my quick little video about my favorite financing calculator.
I have helped customers save millions of dollars by running calculations for them on home financing, and I've even helped a lot of family and friends figure out auto financing, things like that.
Recently had someone who was like, "Oh man I'm buying this car, and they told me that if I do 60 month financing, I can get 3.25% from my bank."
And they were like, "Well, if you finance to the dealership, we can get you 5%, you can get the car this weekend, you don't have to wait 'til Monday for the bank."
And it's such a small difference, right?
So I was able to take probably 10 seconds, and let her know that okay, so if you want the car over the weekend instead of Monday, it's gonna cost you,and it was like $1,800 difference over the life of the loan.
So this calculator is so beneficial.
So I would love to share with everybody.
So here is my beautiful, handy dandy calculator.
So, I'm gonna put the link below this video, so that you could purchase if you would like. You see right here is the information.
I've always gotten it just right off of Amazon.
It's an addiction, yes. Amazon is an addiction, bu that's where I've gotten it.
So, what I love about this calculator is it's so fast and so easy.
So, I know we're more talking about mortgage financing here, but lemme just show you quickly how you could save money, or know the difference of what something costs you when you're financing it.
So, let's say that you're doing a $5,000 loan, okay?
We're gonna go $5,000 loan amount.
Let's say that the interest rate is 5%.
Let's say that the term is five years.
What's that monthly payment?
Oh, there you go.
How fast was that, okay?
But even cooler than that… What does that loan cost you?
That $5,000 at that interest rate costs you $661.37 if you finance for the full entire term of the loan.
It's pretty amazing.
Anybody can do this, anybody can use this.
Let's do something else, okay?
And this calculator does so much more, I'm just showing you just even the most simple version of it.
So, let's say if you're like, "Oh wow, should I finance my home for 15 years over 30?”
"Would I really save a lot of money by shortening the term?"
Well first of all, a 15 year mortgage versus 30 typically has a quite different interest rate, okay?
But for this quick comparison, I'm gonna use the same interest rate, but, it's just insanity.
$100,000 loan, look how easy that is, right?
30 year term.
What's my payment?
There it is, principle and interest only.
That is gonna take me, it's gonna cost me $61,656.09, okay?
What if I wanted to look at that same scenario for a 15 year?
So keep in mind, $61,656.
15 year term.
What's my new payment? What is it costing me?
$28,678, so half, less, well a lot less than half as much money, right?
Remember, my payment is $714 on the 15 compared...Uh oh, did that wrong, all right, let me start over.
$100,000 30 year term, 3.5 interest, payment's $449 versus $714.
So yeah, it's costing us $265 extra a month, however, you're knocking off 15 years of payments, and paying half as much interest.
There's a million scenarios with this, I can have fun doing' this all day long, but my point is, this is the Mac Daddy calculator that you need to get if you're lookin' at financing anything whatsoever in your life so that you can compare, and figure out what that financing is costing you.
Thank you everyone!
Hope you enjoy this video!
**Stephanie Weeks is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to products on Amazon.com.
Every year an average of 21 million people apply for mortgages in the US, and only around 7 million close. I'm on a mission is to change that by spreading mortgage education. Sign up for my newsletter to be a part of my Mortgage Peace Movement!