1. What is Mortgage Interest Increase?

The mortgage interest increase (ΔInterest) represents the difference in total interest paid between two mortgage scenarios. It helps borrowers understand how changes in loan terms affect their total interest costs.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Total\ Interest_{new} \) — Total interest for the new mortgage scenario
• \( Total\ Interest_{old} \) — Total interest for the original mortgage scenario
• \( \Delta Interest \) — Difference in total interest paid

Explanation: This calculation shows how much more (or less) interest you would pay when comparing two different mortgage options.

3. Importance of Calculating Interest Increase

Details: Understanding the interest difference helps borrowers make informed decisions when refinancing, changing loan terms, or comparing different mortgage products.

4. Using the Calculator

Tips: Enter the total interest amounts for both scenarios in dollars. The calculator will show the difference between them.

5. Frequently Asked Questions (FAQ)

Q1: When would I need to calculate interest increase?
A: When comparing different loan terms, interest rates, or considering refinancing options.

Q2: Can the result be negative?
A: Yes, a negative result means you would pay less interest in the new scenario.

Q3: What factors affect total interest paid?
A: Principal amount, interest rate, loan term, and payment frequency all affect total interest.

Q4: Should I consider other factors besides interest?
A: Yes, also consider closing costs, monthly payment changes, and your financial goals.

Q5: How accurate is this calculation?
A: It's precise for comparing known total interest amounts, but doesn't account for potential early payments or changes in terms.