Mortgage Calculator: Making your Homework Easy!
By Sadiya Anjum
A Mortgage calculator is an extremely beneficial online tool that will assist you in working out the details of your mortgage easily. Whether shopping for a first mortgage or looking to refinance, a mortgage calculator will help you view your condition clearly as well as help compare the various options out there.
A basic form of a mortgage calculator will help you determine the monthly payments you are required to make over the life of the mortgage. A mortgage calculator will require you to fill in the basic details of the loan amount (down payment subtracted from the purchase price), the interest rates, the term period of the loan, taxes and insurance. Using these details, a mortgage calculator will determine your monthly payments. When comparing different loan offers, trying different combinations of interest rates/ terms will help you pick out the best loan. Of course the payments stated here may not be definite; the exact details should be obtained from the lender. But the mortgage calculator will give you a general idea which will help you to make decisions.
A mortgage calculator can also help you when you are trying to consolidate your loans. It will help you compare payments on a debt consolidation mortgage loan and your traditional loans. The amortization schedule tool will help calculate your monthly payments required to pay off your principal and steadily reduce your debt. Graphs and charts will be displayed according to the information provided by you. These will highlight factors like the payment of interest over a period of time, when you will start repaying your principal etc.
Another tool like a graphing mortgage will help you see how the factors of down payments, points and term length will affect your loan. Using this tool you will be able to determine whether paying points or increasing the down payment is best for your situation.
A home equity mortgage calculator will show you how using different percentages of your equity affect the payments you will be required to make. This will aid you in your decision while opting for a home equity loan.
When refinancing, a mortgage calculator will again come to be extremely useful. You may have several options open for you at this point and entering each of these factors into the mortgage calculator will help you see the best course of action open to you.
A mortgage calculator is a multipurpose tool provided you know how to use it smartly. Trying out different variations will help you do your homework better when refinancing or applying for a loan. But if you enter false details into the calculator you are fooling no one but yourself. So make sure that you are honest and accurate when keying in your details. This simple and easy to use tool can provide details about your mortgage and aid you while making important decisions. So use it smartly!
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