The cost per thousand calculator helps you to determine the actual cost of borrowing the money to finance your home. The formula is fairly simple, you input your mortgage numbers and the program calculates how much interest you are paying per thousand dollars borrowed. Knowing the value that the mortgage company places n each thousand dollars they are lending you can help you to make a better decision about whether you can actually afford the loan. This is one of the easiest calculations to perform when it comes to mortgages but for accurate information on multiple time lines it is easier to use a program.
Using the calculator above you may find out how much money you would have to pay over the loan amount by the end of the loan life.
The most important number is the lifetime payout amount. Lets pretend you are taking $100,000 loan with 5% interest for 15 years. Your lifetime payout would be $1,423.43 per every $1,000 you are taking from the lender. This means that you would pay 42% (or $42,343) more over the length of the loan.
Upfront and Ongoing Fees
If your loan accompanied with the upfront and/or ongoing monthly fees, you would also be able to see their impact on your final cost per thousand calculations. Be aware of these fees as they could make your payment much more higher.
Assumptions Made to This Cost Per Thousand Calculator
As this is quite simple calculator, there would be no assumptions except to those:
your loan is in Australian dollars
your loan uses standard monthly interest compounding
fees associated with your loan was typed in correctly