Sentences with phrase «more total interest over the life of the loan»

Because a reduced monthly payment under the Pay As You Earn plan generally extends your repayment period, you may pay more total interest over the life of the loan than you would under other repayment plans.

Not exact matches

As student debt becomes more and more common, it is critical that borrowers understand how much student loan interest rates can affect the total payment over the life of a loan.

All other things being equal, a longer loan term usually means you'll pay more in total interest over the life of your loan.

Conversely, if you plan to stay in your home for the life of your loan, by refinancing and extending the loan term, you may save in cash payments for the first few years but end up paying more in total interest payments over the life of your new loan.

Ten basis points may not be a deal killer, but on a $ 420,000 loan it would add more than $ 6,000 to your total interest payments over the life of the loan.

In addition, if you extend the term of your home loan (for example, by refinancing a 30 - year mortgage into another 30 - year mortgage after you've already owned your home and made mortgage payments for 5 years), you may pay more in total interest expenses over the life of the new refinance loan compared to your existing mortgage.

Making additional mortgage payments will shrink the total amount of interest paid over the life of the loan, and the borrower will pay off the debt more quickly.

For example, if a borrower switches the repayment term on an unsubsidized Stafford loan at 6.8 % interest from 10 years to 20 years, it cuts the monthly payments by about a third, but more than doubles the total interest paid over the life of the loan.)

However, loans with longer repayment terms typically have higher interest rates than loans with shorter terms and you will likely end up paying more in total interest over the life of the loan.

This means you will pay more interest over the life of the loan (because you're paying interest on the interest) and you'll have to pay a larger total amount when the loan is due.

While extending your loan term from 5 or 10 years to 15 or 20 years will increase the total interest paid over the life of the loan, it can make your monthly payments more manageable.

All other things being equal, a longer loan term usually means you'll pay more in total interest over the life of your loan.

In particular, it will help you to do the following: ● Compare the monthly payment obligation associated with different loans ● Determine how much interest you'll pay over the life of each loan ● Calculate the total repayment obligation associated with each loan ● Visualize the impact of different... [Read more...]

Moreover, you could easily wind up extending the term of your loan — and, more pointedly, the total amount of interest you'll pay over its life — by refinancing.

Doubling the length of the loan also more than doubles the total interest over the life of the loan.

Doubling the interest rate more than doubles the total interest over the life of the loan.