Blended Rate
What is Blended Rate?
Blended rate is an interest rate that is produce when a loan is finance at a dissimilar rate than was applied to the original loan. Usually, the rate of interest extensive on the additional funds is allow at a rate that is less that the current market standard.
The blended rate mortgage calculator will assist you to calculate the interest rate that you will actually be profitable by having a first and second mortgage. This calculator will also show you what your periodic payment will be on each mortgage, as well as present what the total periodic payment will be for both mortgages.
For example, each monthly payment may be apportion to cover principle and interest for 75% of the remaining original amount, while the remaining 25% is applied to the additional funding that was provided as a result of the refinancing.
A more common approach is to calculate an average rate that is determine by combining the original rate of interest with the new rate and distinguish by two. The average rate applies to the entire outstanding balance, which allow for the borrower with one rate of interest to maintain.
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