Loan comparison is essential when you want to get a clear idea about all the costs that you are required to incur. The costs required to be compared include the monthly principal, interest rate, monthly fee to be paid and a lot more. Before you make the loan comparison, you should keep all the aforementioned factors into consideration to know which type of loan is most suitable for you to be chosen.
What is a loan comparison calculator?
It is an essential tool that computes the estimated amount of monthly payments you will have to make. This calculator calculates the monthly payments of three loans at a time. In this way, you can easily compare multiple loans at a time. When three or more loans are taken into consideration and comparison is made, the user can easily compare the interest to be paid on each loan, total payments and a lot more. This will enable the user to know which type of loan will be more suitable for you to choose.
In order to compare different types of loan, the loan comparison calculator assumes that the interest rate on each type of loan stays constant. The calculator tells in how many monthly payments, the loan can be completely paid off. This information is different for different types of payment plans.
Importance of loan comparison calculator:
There are different financial institutes that provide with the facility of borrowing the money from them. The borrower is required to pay off the borrowed money in a series of monthly payments. These monthly payments also include the interest that the borrower is required to be paid. Sometimes, the user gets so many options to choose from. In order to know which option will be more feasible for the user, the loan comparison calculator can be used.
As a matter of fact, every person has a different level of affordability and preferences. One type of loan suitable for one person can be completely inappropriate for the other person. Therefore, the loan comparison calculator enables the user to compare multiple available loan options.
How to use the loan comparison calculator?
Comparing different types of available loans and making a decision about which loan type is best for you depends on different parameters. All those parameters are required to be taken into consideration so that a wise and appropriate decision can be made.
The factors on the basis of which a general loan comparison calculator makes the comparison are:
- Amount of loan balance
- The rate of interest on the loan money
- Duration of the loan
- Minimum payments to be made over the loan period
Many websites provide the online tool of loan comparison calculator that is intended to provide the maximum ease to the user with which the user can easily compare various available loan options. There are many people who want to compare loans but don’t know about the variables to be chosen in order to make the comparison. The use of a comparison calculator does not require the user to know about any such details.
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Format: MS Excel [.xlsx] 2007/2010
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