Mortgage Debt Consolidation

This calculator is designed to help determine whether using a mortgage to consolidate your debt is right for you. Enter your credit cards, installment loans and the mortgages you wish to consolidate by clicking on the 'Enter Data' button for each category. Then change the consolidated mortgage loan amount, term or rate to create a loan that will work within your budget. Click the "View Report" button for detailed results.
By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.
Mortgage Debt Consolidation
**FIG_GRAPHTITLE** Column Graph: Please view the report to see detailed calculation results in tabular form.

Definitions

Home equity loan amount

Original or expected balance for your mortgage. Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible. Starting 2018, Home equity loans will no longer qualify for a tax deduction unless they are used to buy, build or substantially improve the taxpayer's home that secures the loan. Our calculator limits your interest deduction to the interest payment that would be paid on a $1,000,000 mortgage.

Please note that in addition to the $1,000,000 mortgage debt limit, this calculator assumes that your itemized deductions will exceed the standard deduction for your income tax filing status. If your itemized deductions don't exceed your standard deduction, the benefit of deducting the interest on your home will be reduced or eliminated.

Standard Deduction for 2018 Federal Income Tax
Filing StatusStandard Deduction
Married Filing Joint$24,000
Qualified Widow(er)$24,000
Single$12,000
Heads of Household$18,000
Married Filing Separately$12,000
We also do not consider any tax savings you might have previously had if you are consolidating an existing mortgage.
Interest rate

Annual interest rate for this mortgage.

Term

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Payment

Monthly principal and interest payment (PI) for this mortgage.

Tax Rate

Combined state and Federal income tax rate. The marginal combined state and Federal tax rate you expect to pay. Use the table below to help you determine your Federal tax rate. Use the ‘Filing Status and Income Tax Rates Table’ to assist you in estimating your federal tax rate.

Filing Status and Income Tax Rates 2018*
Tax RateMarried Filing Jointly or Qualified Widow(er)SingleHead of HouseholdMarried Filing Separately
*Caution: Do not use these tax rate schedules to figure 2017 taxes. Use only to figure 2018 estimates. Source: 2017 Tax Cuts and Jobs Act
10%$0 - $19,050$0 - $9,525$0 - $13,600$0 - $9,525
12%$19,050 - $77,400$9,525 - $38,700$13,600 - $51,800$9,525 - $38,700
22%$77,400 - $165,000$38,700 - $82,500$51,800 - $82,500$38,700 - $82,500
24%$165,000 - $315,000$82,500 - $157,500$82,500 - $157,500$82,500 - $157,500
32%$315,000 - $400,000$157,500 - $200,000$157,500 - $200,000$157,500 - $200,000
35%$400,000 - $600,000$200,000 - $500,0000$200,000 - $500,000$200,000 - $300,000
37%Over $600,000Over $500,000Over $500,000Over $300,000
Use minimum payment

If you checked the "use credit card minimum payments" box, your monthly payment is calculated as 4% of your current outstanding balance. With the "use credit card minimum payments" box checked, your monthly payment will decrease as your balance is paid down. This can greatly increase the length of time it takes to pay off your credit cards. Uncheck this box to enter your own monthly payment that will remain the same until your balance is paid in full.

(We calculate your minimum monthly payment as 4% of your current outstanding balance. While your actual minimum monthly payment may be slightly different, this is one of the most common methods used by credit card companies to calculate minimum payments.)

Credit Card Balance

Your total current balance for this credit card.

Credit Card Interest rate

The annual percentage rate you pay for this credit card. The rate you enter is used to calculate the interest on all future credit card payments. The length of time to pay off this credit card may be much greater than calculated if you enter a low promotional interest rate that is only good for a short period of time.

Credit Card Payment

This is your initial monthly payment. If you checked the "use credit card minimum payments" box, your monthly payment is calculated as 4% of your current outstanding balance. With the "use credit card minimum payments" box checked, your monthly payment will decrease as your balance is paid down. This can greatly increase the length of time it takes to pay off your credit cards. Uncheck this box to enter your own monthly payment that will remain the same until your balance is paid in full.

(We calculate your minimum monthly payment as 4% of your current outstanding balance. While your actual minimum monthly payment may be slightly different, this is one of the most common methods used by credit card companies to calculate minimum payments.)

Loan balance

Your total current balance for an installment loan.

Loan interest rates

The annual percentage rate you pay for this loan. Enter the current interest rate for this loan. This calculator assumes your rate will remain the same for the entire repayment period. We use this to calculate the interest you will pay on this loan and the number of payments that are remaining.

Loan payment

This is your monthly payment. Enter the actual monthly payment for your loan. We use this to determine your payment totals and to calculate the remaining payments.

Remaining loan payments

This is the calculated number of payments remaining for this loan. It is based on your current balance, payment and interest rate.



Sunmark Federal Credit Union
1187 Troy Schenectady Road
Latham, NY

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.