With the growing popularity of second mortgages to finance home improvements, we're offering you the chance to use our blended rate mortgage calculator to figure out the blended interest rate on a combined financing arrangement. The calculator not only provides the blended interest rate, but the monthly payment amount for each loan, and the blended mortgage payment.
The variables used in our online calculator are defined in detail below, including how to interpret the results.
The total amount of money borrowed for the first mortgage you have on your home. This is also referred to as the principal of the loan.
This is the annual interest rate on your first mortgage. This is not the APR, which takes into account other costs associated with the mortgage.
The term of the loan is the number of years over which the first mortgage will be paid. The most common mortgage terms are 15, 20, and 30 years.
This is the mortgage amount you are considering for a second mortgage or loan.
Once again, this is the annual interest rate available to you on a second mortgage or loan.
This is the term of the second loan, which may be different than the original mortgage.
This is the monthly mortgage payment for each of the first and second mortgages. This value does not include mortgage insurance or property taxes, which are sometimes included with your mortgage payment.
This is the blended mortgage amount you would be paying under a blended financing arrangement. It is the simple addition of the first and second mortgages.
The blended interest rate is calculated using a weighted average technique. This value is the average interest rate you would be paying during the time you are paying off both the first and second mortgages.
Blended Rate Mortgage Calculator - Copyright © 2005 - 2015 Money-Zine.com (Last Reviewed on February 1, 2015)
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.