Home Equity Debt Consolidation

This calculator is designed to help determine whether using equity in your home to consolidate debt is right for you. Enter your credit cards, installment loans and any other debt you wish to consolidate by clicking on the 'Enter Data' button for each category. Then change the consolidated 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.
Home Equity Debt Consolidation
**FIG_GRAPHTITLE** Column Graph: Please view the report to see detailed calculation results in tabular form.
Please note you have selected interest-only payments. This means you are not paying down the principal balance on your home equity line of credit. In order to completely pay off your balance, we recommend specifying a repayment term - either 5, 10, or 15 years
.

Definitions

Home equity line amount

Original or expected balance for your home equity loan or line of credit. The default amount will be the total of all of your debts. You can increase or decrease this amount as needed. Changing the loan/line amount automatically changes the monthly payment, and vice versa.

Monthly payment

Monthly principal and interest payment (PI) for your home equity loan/line. Changing the monthly payment automatically changes the loan/line amount, and vice versa.

Repayment term
Choose the product type for your home equity loan. Your choices are a 5 Year Fixed Rate, 10 Year Fixed Rate, or a 5/1 ARM (30 year).
Interest rate

Annual interest rate for this home equity loan or line of credit.

Use minimum payment

In the "Credit Card debt" section, if you checked the 'use credit card minimum payments' box, your monthly payment is calculated as 4% of your current outstanding balance and 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 a common method 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 and 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

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

Payments remaining

This is the calculated number of payments remaining for this loan installment. 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.