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Home repairs and renovations can be expensive. If you are interested in remodeling your kitchen or making other repairs or renovations to your home, you can equity loan to access the money you need. And this can bring an additional advantage. You could benefit from tax incentives by using the money you borrow to improve the home you borrow it for.
On the other hand, it is important to make sure that you can afford the loan before taking it out. Of mortgage loans secured by your homeyou may lose this if you do not make your payments as agreed.
How much would a $80,000 be? monthly costs for a mortgage loan at current average rates? We have made the calculation below.
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How much would an $80,000 mortgage loan cost per month?
Today average interest rates on home loans with a term of 10 and 15 years are 8.74% and 8.73% respectively. Here’s how much an $80,000 mortgage loan would cost monthly at these rates:
- Mortgage loan with a term of 10 years: A 10-year mortgage loan of $80,000 with an interest rate of 8.74% would come with a monthly payment of $1,002.18. And you would pay $40,262.04 in interest by the time you paid off the loan if you made minimum payments.
- Mortgage loan with a term of 15 years: A 10-year mortgage loan of $80,000 with an interest rate of 8.73% would come with a monthly payment of $798.61. And you would pay $63,750.58 in interest by the time you paid off the loan if you made minimum payments.
If you can afford a payment of $1,002.18, the A 10-year mortgage loan may be your better option because it would save you $23,488.54 in interest over the life of the loan. But it may be worth paying the extra interest for the lower monthly payment of $798.61 if the monthly cost of the loan is your primary concern.
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How much would other home loans cost per month?
While some home projects can cost you $80,000 or more, other home renovations and repairs have different price tags. So if you want to access your home equity for a different amount, it helps to know what this costs. Here’s what you can expect to pay monthly for other home equity loans:
Beginning balance of a mortgage loan of $10,000
- Term of 10 years: A A $10,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $125.27 per month and $5,032.75 in interest over the life of the loan.
- Term of 15 years: A $10,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $99.83 per month and $7,968.82 in interest over the life of the loan.
Beginning balance of a mortgage loan of $20,000
- Term of 10 years: A A $20,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $250.55 per month and $10,065.51 in interest over the life of the loan.
- Term of 15 years: A $20,000 mortgage loan with a 15-year term and an interest rate of 8.73% costs $199.65 per month and $15,937.64 in interest over the life of the loan.
Beginning balance on a mortgage loan of $25,000
- Term of 10 years: A A $25,000 mortgage loan with a 10-year term at an interest rate of 8.74%, this would cost $313.18 per month and $12,581.89 in interest over the life of the loan.
- Term of 15 years: A $25,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $249.57 per month and $19,922.06 in interest over the life of the loan.
Beginning balance on a mortgage loan of $40,000
- Term of 10 years: A A $40,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $501.09 per month and $20,131.02 in interest over the life of the loan.
- Term of 15 years: A $40,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $399.31 per month and $31,875.29 in interest over the life of the loan.
Beginning balance of a $50,000 mortgage loan
- Term of 10 years: A A $50,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $626.36 per month and $25,163.77 in interest over the life of the loan.
- Term of 15 years: A $50,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $499.13 per month and $39,844.11 in interest over the life of the loan.
Beginning balance of a mortgage loan of $60,000
- Term of 10 years: A A $60,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $751.64 per month and $30,196.53 in interest over the life of the loan.
- Term of 15 years: A $60,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $598.96 per month and $47,812.93 in interest over the life of the loan.
Beginning balance on a mortgage loan of $75,000
- Term of 10 years: A A $75,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $939.55 per month and $37,745.66 in interest over the life of the loan.
- Term of 15 years: A $75,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $748.70 per month and $59,766.17 in interest over the life of the loan.
Beginning balance of a $100,000 mortgage loan
- Term of 10 years: A A $100,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $1,252.73 per month and $50,327.55 in interest over the life of the loan.
- Term of 15 years: A $100,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $998.27 per month and $79,688.22 in interest over the life of the loan.
Beginning balance of a mortgage loan of $150,000
- Term of 10 years: A A $150,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $1,879.09 per month and $75,491.32 in interest over the life of the loan.
- Term of 15 years: A $150,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $1,497.40 per month and $119,532.33 in interest over the life of the loan.
Beginning balance of a $200,000 mortgage loan
- Term of 10 years: A A $200,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $2,505.46 per month and $100,655.09 in interest over the life of the loan.
- Term of 15 years: A $200,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $1,996.54 per month and $159,376.45 in interest over the life of the loan.
Beginning balance of a $300,000 mortgage loan
- Term of 10 years: A A $300,000 mortgage loan with a 10-year term at 8.74% interest, this would cost $3,758.19 per month and $150,982.64 in interest over the life of the loan.
- Term of 15 years: A $300,000 mortgage loan with a 15-year term and an interest rate of 8.73% would cost $2,994.80 per month and $239,064.67 in interest over the life of the loan.
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it comes down to
The monthly costs of your home equity loan depend on the starting amount you borrow, your term and your interest rate. You can reduce your monthly costs by opting for a longer loan term or a lower loan value. But if you choose a longer term, it’s important to consider the long-term interest costs associated with the loan and weigh that against your monthly savings. Compare today’s best home loans now.
