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Debt Consolidation Calculator (1a)

Debt Consolidation for House Purchasers

For borrowers with a first mortgage who may want to consolidate
non-mortgage debt, either by refinancing the first mortgage
with "cash-out", or by taking out a new second.

Enter the Following:
Information About Non-Mortgage Debts You May Wish to Consolidate
  How Many Non-Mortgage Debts Do You Wish to Consolidate? (up to 10)
Include Brief Description
(e.g. Visa, etc.)
Amount Interest
Information About You and Your House
  Expected Years in House, Cannot Exceed Term
  Rate of Interest on Savings  (e.g. 2.5)
  Income Tax Bracket ( e.g. 27 )
  Purchase Price of House (e.g. 225000)
  Down Payment (e.g. 35000)
  Optional:  Expected Rate of Property Value Appreciation
Information About Available New Mortgage Loans
  1st Mtg
1st Mtg
Non-Mtg Debt
2nd Mtg
Equal to
Non-Mtg Debt
  Loan Amount ( computed )
  Interest Rate (e.g. 7.50)
  Points  ( e.g. 2.5 )
  Other Charges (e.g. 2250)
  Monthly Mortgage Insurance ( computed )  


This is your marginal tax rate, the rate at which each additional dollar of income will be taxed. If you pay only Federal income taxes, it is the highest tax bracket you used when you calculated your taxes. Federal tax brackets currently are: 10%, 15%, 25%, 28%, 33%, and 35%. If you also pay state and/or local income taxes, these marginal rates can be added to the Federal rate. For example, if you had to pay 25% to the IRS and 5% to the state of Pennsylvania, your tax bracket is 30%. To perform a "pre-tax" analysis enter zero (0) as the tax rate. The period cannot exceed the shortest mortgage term. The period may be stated in fractions. For example, 25 years and 1 month would be entered as 25.083, 25 years and two months would be 25.167, and 25 years and 3 months would be 25.25, etc. All settlement costs that might differ between any two deals. This includes all lender fees of any sort, and all third party fees (such as title insurance, apprraisals and credit report), but excluding charges of governments which cannot vary from one deal to another. Do not include escrow reserves for taxes and insurance, or prepaid (per diem) interest. If you have not made any extra payments on your loan, this is the original term less the number of monthly payments that have been made. If you have made any extra payments, you can find the period remaining by clicking here and entering your current balance, rate, and monthly payment. Make sure the payment is principal and interest only. (hover over yellow icon to make this pop-up disappear) Enter either the minimum payment or the period remaining to term. The other will be calculated automatically This is the interest rate you could have earned on the mortgage payments and other financing charges during the period you are in your home. For most people, it would be the interest rate on a bank account or a money market fund. A loan amount larger than 80% of property value will require mortgage insurance. Mortgage insurance premium classes are 80-85%, 86-90% and 90-95%, with the last carrying the highest premium. Points and Other Charges are included in the loan amount. Estimate all closing costs other than points and enter your estimate for each loan here. For further information, read "How to Shop Settlement Costs". (Click on link at bottom of page) This is required only if your are now paying mortgage insurance. If you are paying mortgage insurance, we need to know the value of your house when the current loan was taken out so that we can figure out when the insurance payment will stop. We assume it stops when the balance reaches 78% of original value. The mortgage insurance premiums are calculated automatically based on the loan to value ratio and the term. No premiums are shown for ratios above 100%, which carry interest rate premiums rather than mortgage insurance. If these figures are not correct, you can override them. If you enter a value, mortgage insurance will be terminated when the loan balance equals 80% of the appreciated value of the property. This is your total cash investment. Points and other upfront costs are included in the loan amount. For a change in this number to take effect, you must either hit the tab on your keyboard, or click your mouse while the cursor is outside the number box.