A loan calculator mortgage calculator is a clever little web
program that is freely available on many loan and mortgage related websites.
The
principal behind a loan calculator mortgage calculator is quite simple - enter
the amount of the mortgage loan into the calculator as input along with the
interest rate applied to the loan and the loan duration, hit the 'submit'
button and 'hey presto' you have a monthly loan repayments schedule.
You can enter the loan parameters into the mortgage calculator
along with your mortgage balance for two or more mortgage offers and get an
idea of what a particular mortgage offer will cost you each month, in addition
to what it will cost you in total over the lifetime of the loan.
It is a good idea to print off each set of loan calculations
from the mortgage calculator and make a side-by-side analysis of them to compare
your loan calculator results for different mortgage offers accurately.
If the mortgage
calculator you are using cannot handle multiple interest rates across the life
of the loan then you may need to do several calculations to arrive at the final
loan cost prior to making your side-by-side comparison.
In addition to mortgage loan comparisons a loan calculator
mortgage calculator can be used to work out how much of a mortgage loan you can
pay for in the first place.
To do this simply choose a calculator that allows
you to 'reverse' the calculation process by entering the repayment amount that
you want to pay / can afford to pay each month and the interest rate.
The calculator will take the loan input information and from
it extrapolate the total mortgage loan you can apply for. Do bear in mind
though that mortgage companies are rarely willing to lend more than 3.5 times
your salary on a 75% mortgage or any loan greater than 75%.
Given below is a short list of mortgage calculators to help
you make your financial decision.
APR Mortgage Calculator
An APR mortgage calculator helps you calculate and compare
the APRs or Annual Percentage Rates of different types of mortgage loans. To
use an APR mortgage calculator, you need to fill in the loan amount and the
quoted interest rate.
Say for example, you take in a 30-year loan for $20,000 at 4.5%
interest rate. Percentage of discount points is 2.0% with a closing fee of
$1,000. When you calculate this using the APR mortgage calculator, you'll find
that the annual interest rate of this loan is 5.5275%.
Comparison Mortgage Calculators
This mortgage calculator as the name itself suggests, allows
you to compare several mortgage types and find out what suits you best. You can
put in variables to as much as four loans into this mortgage calculator and
start comparing prices.
By providing the number of payments to be made,
interest rates, and principal amount, this mortgage calculator will calculate
for you the projected monthly payment.
30 Year and 15 Year Mortgage Calculator
This mortgage calculator will help you decide which mortgage
suits your needs - 30 year or a 15 year term. For instance, you're considering
a $100,000 loan. For 15 years, the interest rate is 6.250%. For a 30-year term,
the interest will increase slightly to 6.500%. Discount points for each are
equal at 1%.
For more accurate results on this mortgage calculator, let's
put in a state/federal tax rate of 38%, property tax amount of $2,000,
homeowner's insurance of $600, and savings rate of 4%.
The purchase price of
the home is $125,000. The result generated by the mortgage calculator will be a
total payment of $1,074 for the 15-year term and $849 for the 30-year term.
ARM vs. Fixed Mortgage Calculator
An ARM vs. fixed rate mortgage calculator would require you
to fill in the details both mortgages. Once done, the mortgage calculator will
help you determine how much you can save with either mortgage types.
Different financial situations require different types of
mortgage. An adjustable rate mortgage is good when the loan term that you want
is short.
On the other hand, fixed rate mortgages might give you the certainty
that you need when it looks like interest rates are rising. Use ARM vs. fixed
rate mortgage calculators to find out which mortgage suits you.
The mortgage calculator will show you that with a fixed rate
loan, you will be paying $734.18 monthly and no savings. On the one hand, the
mortgage calculator will also show you that ARM loan will have you paying up to
$663.67 monthly with cumulative savings up to $11,024.46.
For example, you decide to take out a loan of $105,000
payable in 30 years. The fixed rate mortgage interest rate is 7.5% while the
ARM interest rate is 4% with an adjustable period of one year.
Maximum cap
period of the ARM loan is 0.5% while the lifetime cap is 4%. Once you put in
these details into the mortgage calculator, you can start estimating your
savings on each mortgage.
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