Weighted Average Interest Rate Comparisons
Use these calculators to determine the effective interest rate when using more than one loan.
Enter the Property Value or Purchase Price  
Option 1
Down Payment or Equity Position if Refi
Adjust the Loan Amounts and Rates Loan to Value Loan Amounts
  Rate   Yearly Interest
First Mortgage Loan to Value
Second Mortgage Loan to Value
Combined LTV and Loan Total
Down Payment Plus Loans (100%)  
Weighted Average Rate & Total Yearly Interest    

Sometimes, using two loans instead of one to finance your property can be a smart move:

Taking a first mortgage loan to 80% of the property value and using a second for any difference needed is a strategy often used to avoid PMI or to keep the majority of your financing at conventional limits.

However, it also pays to be aware of what the real combined rate is by properly "weighting" each loan amount and then determining the overall cost of interest. This analysis can be used to compare available options for your situation.

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