Debt basics
Annual Percentage Rate (APR)
APR is a yearly measure of borrowing cost expressed as a percentage. EastStar uses the APR you enter to estimate interest, but its projection does not reproduce every lender calculation.
EastStar Learn
Make sense of the numbers.
Clear, practical explanations of debt, savings, payoff planning, car buying, housing, and the estimates shown in EastStar.
19 articles
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Debt basics
Principal
Principal is the amount borrowed or the portion of a debt balance that has not yet been repaid. Reducing principal usually lowers the amount on which future interest is calculated.
Debt basics
Compound Interest
Compound interest means interest is calculated on principal and previously accumulated interest. Its effect depends on the rate, balance, time, payment activity, and compounding frequency.
Debt basics
Minimum Payment
A minimum payment is the least amount an account requires by its due date. Paying only that amount can keep an account current while still producing a long payoff period and substantial interest.
Debt basics
Recurring Expenses
Recurring expenses are costs that repeat on a regular schedule. Recording them consistently helps EastStar estimate how much take-home income remains after expected obligations.
Payoff planning
Extra Payments
An extra payment is money paid above the required amount. When it reduces principal as intended, it can shorten repayment and lower future interest, subject to lender rules.
Payoff planning
Debt Avalanche
The debt avalanche directs extra money to the highest-rate debt while minimums continue on all debts. It is designed to reduce the most expensive debt first.
Payoff planning
Debt-Free Date
A debt-free date is the projected month when modeled debt balances reach zero. It is a planning estimate that moves when balances, rates, payments, or assumptions change.
Payoff planning
Amortization Schedule
An amortization schedule shows how scheduled loan payments are divided between principal and interest over time. It also tracks the estimated balance remaining after each payment.
Debt basics
APR vs. APY
APR generally describes the annual cost of borrowing, while APY describes annual earnings on a deposit after compounding. The two percentages answer different questions and should not be used interchangeably.
Savings basics
Annual Percentage Yield (APY)
APY estimates the annual interest earned on a deposit account after accounting for compounding. Actual earnings can differ when rates, balances, fees, or account activity change.
Savings basics
Savings Goals
A savings goal links one tracked account, an amount to save, and a target date to estimate a monthly contribution and a projected completion date.
EastStar metrics
Scenario Comparison
An EastStar scenario models a hypothetical payoff change or savings target without changing the saved profile. Its projection illustrates entered assumptions rather than promising an outcome.
Car buying
Car Purchase
Buying a car means taking ownership in exchange for an upfront payment, financing, or both. Compare the total price, loan cost, recurring expenses, and expected ownership costs before deciding what fits your budget.
Car buying
Car Lease
Leasing gives you use of a vehicle for a set term and mileage limit, usually with monthly payments and end-of-lease conditions. Review the total lease cost, fees, mileage rules, and return or purchase options.
Car buying
Car Purchase vs. Lease
Purchasing builds ownership after the loan is paid, while leasing trades ownership for a fixed-term use arrangement. Compare payment structure, upfront costs, mileage, flexibility, long-term cost, and how long you expect to keep the vehicle.
Housing
Buying a Home
A home purchase brings upfront costs, a monthly housing budget, and ongoing responsibility for the property. Learn what to include and how EastStar estimates a home price that fits your cash flow.
Housing
Renting a Home
Base rent is only part of the cost of renting. Account for utilities, insurance, fees, and move-in cash, then use EastStar to estimate the monthly rent your budget can support.
Housing
Buying vs. Renting a Home
Buying can build equity, while renting can preserve cash and flexibility. Compare the full monthly cost, upfront cash, expected time in the home, and uncertainty before deciding which fits your life.
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