Using a Mortgage Calculator
Consumers should make use of the various free mortgage calculators to figure out costs and benefits of the different types of mortgages for themselves. This way, you don't need to call your broker over every question, ever interest rate change. Mortgage calculators can help gauge the benefits of refinancing an existing loan as well. Mortgages and mortgage calculators may seem somewhat intimidating until you've used them a few times, the control they give you over your finances and the knowledge you obtain about interest rates and loan programs makes a huge difference in your financial success in the future.
How to Use an Online Mortgage Calculator
Want to figure out how much you can afford before going to see a mortgage broker? All you need to do is enter a few numbers into a mortgage calculator. You can factor in the amount you have towards your down payment, the cost of the home you are interested in buying, taxes and a few interest rates that you think you might get, and you'll be shown your monthly payment. Using mortgage calculators are a great way to see if you're ready to purchase a home or if you can't really afford the house you want yet. You can also see the financial benefits that result from putting more money down, or with lower interest rates simply by changing the numbers you've put in the mortgage calculator. Try a few variations to see how it effects the monthly payment. Check out our mortgage calculator and learn more.
Mortgage Payment Calculators
If your mortgage broker has suggested a few different loan programs to you, it is a good idea to test each one using a mortgage calculator. Try to calculate payments for a 30 year or 15 year loan, and see how it affects the monthly payment amount. Compare what putting down an additional $5,000.00 on the mortgage will save you versus reserving the money for home improvements. You can quickly see the difference in interest that one percentage point can make. Mortgage payment calculators are great tools for comparing programs and options at your own pace, and will enable you to make intelligent decisions on the type of mortgage you finally decide to obtain.
Using an Interest Only Mortgage Calculator to Predict the Future
If you're considering an interest only mortgage, but want to get an idea of what the financial situation may be in the future, using a mortgage calculator will help you predict the future. You can use the calculator to educate yourself on the fluctuations you'll experience when the interest rate goes up or down a percentage point or two, and also you can find out how much money you'll be paying once your interest only mortgage requires you to start paying on the principal amount, as well. Interest only mortgages are very tempting, particularly for people on tight budgets or those who are buying their first home, but without using a mortgage calculator it's easy to get in over your head and purchase a home that costs more than you can afford once you need to start paying on the principal as well as the interest.
3 Tips to Using an Interest Only Mortgage Calculator
When using an interest only mortgage calculator, you'll need a little knowledge first in order to make it effective. First, you will need to know the loan amount and the interest only term. You plug these numbers into the calculator, and it creates a schedule for you. Note the huge increase when it comes time to pay both interest and principle. Learning this information will help you decide whether or not you want to obtain an interest only mortgage or if you want to use a more traditional loan to finance the purchase of your home. If your mortgage is an interest only loan already, using the calculator can help you decide when and if you want to refinance into another type of mortgage.
Comparing Loans with a Mortgage Amortization Schedule
You've probably heard the term “mortgage amortization schedule” but what exactly is a mortgage amortization schedule? Why does it matter? A mortgage amortization schedule shows your loan over the course of the entire life of the loan. It shows how each of the monthly payments are applied- the amount that goes to the interest and the amount that goes to the principal. It also shows how much money you're actually paying for your house, including the amount of interest. Mortgage amortization calculators may make you consider shorter term loans with lower interest rates, but keep in mind your monthly budget for payments.
Adjustable Rate Mortgages
If your adjustment period is about to occur with your adjustable rate mortgage, you can make use of a mortgage calculator in order to better understand what the changes in interest rates mean for your monthly payment. A mortgage interest calculator may convince you to refinance your adjustable rate mortgage into a fixed rate mortgage, but whichever you decide, making use of a mortgage interest calculator will set you up for smart decision making.
Use a Mortgage Payment Calculator during Refinance
If monthly payments are your primary concern, you'll want to master using a mortgage payment calculator. It's an outstanding tool that will help you determine the effects of interest rates and loan term changes on your monthly payments, and figure out whether or not it makes financial sense to get the refinance or not.
Choosing a 15 or 30 Year Mortgage- The Answer is found With a Mortgage Amortization Calculator
The type of mortgage program you go with can be based on many factors - the amount of the monthly payment, the amount of interest and how much money you are actually paying on that loan over the long term.. To find out the differences in various mortgages, use a mortgage amortization calculator and plug in a 15 year loan at 6% interest, a 20 year loan at 6.5% and a 30 year mortgage at 8% interest. You'll be shocked at how much more money you pay over the long term for the ability to have smaller monthly payments. Make sure you educate yourself before signing any paperwork for a mortgage.