15-year Mortgage Rate Calculator

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HELOC (Home Equity Line of Credit) Calculator

Understanding Your HELOC Borrowing Power

A Home Equity Line of Credit (HELOC) functions much like a credit card secured by your home. Unlike a standard home equity loan that provides a lump sum, a HELOC allows you to withdraw funds as needed during a "draw period" and pay them back over time.

How This Calculator Works

Lenders typically do not allow you to borrow 100% of your home's value. The Combined Loan-to-Value (CLTV) ratio is the key metric. Most lenders set a CLTV limit between 80% and 90%.

  • Home Value: The current fair market appraisal of your property.
  • Mortgage Balance: The total remaining principal on all existing loans secured by the home.
  • LTV Limit: The maximum percentage of the home's value the lender is willing to secure (80% is the industry standard).

Example Calculation

Imagine your home is worth $500,000 and you owe $300,000 on your primary mortgage. If a lender offers an 85% CLTV limit:

  1. $500,000 (Home Value) x 0.85 (CLTV Limit) = $425,000 Total Borrowing Capacity.
  2. $425,000 – $300,000 (Current Mortgage) = $125,000 HELOC Limit.

Key Factors for Approval

Beyond the equity in your home, lenders will evaluate several other criteria before approving a credit line:

  • Credit Score: A score of 700 or higher usually nets the best interest rates.
  • Debt-to-Income (DTI) Ratio: Lenders prefer a DTI below 43%.
  • Verifiable Income: You must prove you have the cash flow to handle potential interest-only or principal-plus-interest payments.

Note: This calculator provides an estimate for informational purposes. Actual credit limits are subject to professional appraisal and lender underwriting guidelines.

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15 Year Mortgage Rate Calculator

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Compound Interest Calculator

Annually Semi-annually Quarterly Monthly Daily

Results:

Future Value: $0.00

Total Interest Earned: $0.00

Understanding Compound Interest

Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods. It's often referred to as "interest on interest." This powerful concept can significantly grow your investments over time, making it a cornerstone of financial planning and wealth building.

How Compound Interest Works

The magic of compound interest lies in its exponential growth. Unlike simple interest, which is calculated only on the original principal amount, compound interest allows your earnings to generate their own earnings. This means that the longer your money is invested and the more frequently it compounds, the faster your wealth can grow.

The Formula

The future value of an investment with compound interest can be calculated using the following formula:

A = P (1 + r/n)^(nt)

  • A = the future value of the investment/loan, including interest
  • P = the principal investment amount (the initial deposit or loan amount)
  • r = the annual interest rate (as a decimal)
  • n = the number of times that interest is compounded per year
  • t = the number of years the money is invested or borrowed for

Why Compound Interest Matters

Understanding and utilizing compound interest is crucial for achieving your financial goals. Whether you're saving for retirement, a down payment on a house, or any other long-term objective, compounding can significantly accelerate your progress. Starting early and investing consistently are key strategies to harness the full power of this financial tool.

Factors Affecting Compound Interest

  • Principal Amount: A larger initial investment will naturally lead to higher future values.
  • Interest Rate: Higher interest rates accelerate the compounding process.
  • Time Horizon: The longer your money compounds, the more significant the growth.
  • Compounding Frequency: More frequent compounding (e.g., daily vs. annually) generally leads to slightly higher returns, though the difference can be marginal for shorter periods.

This calculator helps you visualize how these factors interact to determine the future value of your investment and the total interest you can expect to earn.

function calculateCompoundInterest() { var principal = parseFloat(document.getElementById("principal").value); var annualRate = parseFloat(document.getElementById("annualRate").value); var years = parseFloat(document.getElementById("years").value); var compoundingFrequency = parseInt(document.getElementById("compoundingFrequency").value); if (isNaN(principal) || isNaN(annualRate) || isNaN(years) || isNaN(compoundingFrequency)) { document.getElementById("futureValue").textContent = "Invalid input"; document.getElementById("totalInterest").textContent = "Invalid input"; return; } var ratePerPeriod = annualRate / 100 / compoundingFrequency; var numberOfPeriods = years * compoundingFrequency; var futureValue = principal * Math.pow((1 + ratePerPeriod), numberOfPeriods); var totalInterest = futureValue - principal; document.getElementById("futureValue").textContent = "$" + futureValue.toFixed(2); document.getElementById("totalInterest").textContent = "$" + totalInterest.toFixed(2); }

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