Home Equity Loan Calculator

Note: Although we believe the calculations in this spreadsheet to be correct, we do not guarantee the results. Because your personal financial situation is unique, you probably shouldn't rely on this information for making your financial decisions. Please consult your financial advisor, accountant, and lending institution before making any financial decisions.

This loan calculator can be used for estimating the interest savings from accelerated bi-weekly payment plans. Normally, making bi-weekly payments is a convenience that a lender may offer in case you want to coordinate your payments with your bi-weekly paycheck. It is also a way to consistently make extra payments and to pay off your loan earlier.

Usually, the bi-weekly payment amount is half of the normal monthly payment, which means that you are also paying extra principal, because you make 26 payments per year. In the spreadsheet, you can simulate this by making an extra payment of Payment/12 each month, where Payment is the normal monthly payment. The calculations will be very close to reality, as long as your lender doesn't charge you extra fees for making prepayments.

The Home Equity Calculator worksheet (the 3rd tab in the workbook) lets you calculate the amount of equity in your home after a number of years. Although it is limited to analyzing fix-rate mortgages, it can be very handy for analyzing your current state, and making useful predictions in case you want to sell your home later.

Here are some of the questions it can help you answer:

• How many years will it take to pay off each loan?
  
  
• I want to sell my home in 5 years. How much will equity will I build up by then?
  
  
• What happens if the value of my home drops? Could I end up oweing more than it's worth? [short answer - yes]

It doesn't matter whether you've made prepayments in the past, you just enter the current balance, the annual interest rate, and your monthly payment (not including taxes and insurance). Unlike other home equity calculators, this one lets you include your 1st mortgage and your 2nd mortgage (or a home equity loan). It will work for interest-only mortgages (assuming a constant rate), and if you enter a monthly payment larger than the normal amortized monthly payment, it assumes that the extra payment is going towards the principal.

Home Equity Amortization Calculator : at Eloan.com. Handles extra payments.

Home Equity Calculator : at MSN.com. This calculator includes the appreciation of the home, but only considers a single mortgage.