When it comes to mortgages, there are so many different variables that come into play, it’s sometimes hard to know what your payments will be.
A mortgage calculator can save you a lot of money
Even if you already have a mortgage, you might want to gauge how quickly you could repay your mortgage if you increased your payments to a certain amount or the amount you would have to pay each month to repay your mortgage within a certain about out time.
You don’t have to be a mortgage expert to do these calculations. Using a mortgage calculator you can input information about your mortgage and the variable you want to change and find out numbers you are looking for.
Types of Mortgage Calculators
A mortgage loan payment calculator calculates the amount of your monthly payment based on the amount of the loan, the interest rate, points charged by the lender, cost of the loan, and the length of the loan.
By adjusting these factors in the mortgage calculator, you can estimate how your monthly payments will change. For example, if you are unsure of your interest rate, you can test various interest rates to see how your monthly payment will be affected.
Another scenario you can test using a mortgage calculator is how your monthly payment will change if shorten or lengthen the amount of the loan.
Some mortgage calculators allow you to test the amount you can afford to pay for a mortgage.
Into the mortgage calculator you enter your income information, the amount of down payment you would like to pay, debt information, and loan information. The mortgage calculator will return to you the amount you should qualify. The calculator also gives you the monthly payment and tax information for the mortgage you are qualified for.
Finding a Mortgage Calculator
Locating a mortgage calculator isn’t difficult at all. You can easily find one by entering the phrase “mortgage calculator” into a search engine.
The search engine will return several results of websites to you. Look at the different calculators and play around with the functionality offered.
Bankrate.com offers a mortgage calculator that is fairly easy to use. You can find the calculator by visiting the website and typing “mortgage calculator” in the search box.
In the calculator, enter your mortgage information and monthly payments, and then click the “Show/Recalculate Amortization Table” button. You will be shown a table listing your payments for the length of your loan, along with the principal and interest with that payment and the balance of your loan.
Using Bankrate’s mortgage calculator, you can also calculate the affects of adding extra money to your monthly payment, adding a lump sum annual payment, or a one-time payment during a specific month and year. When you recalculate the amortization table you can see the effect of the payments on your mortgage.
A mortgage calculator is a good way to play with factors associated with your mortgage and see the effect those factors have on your monthly payment and total payoff. If you have a mortgage, or you are thinking about getting one, a mortgage calculator will be of assistance to you