Mortgage Calculator - Many mortgage sites have mortgage calculators such as these:
- Rent Vs. Buy Calculator
- Mortgage Qualification Calculator
- Mortgage Payment Calculator
- Refinance Calculator
- Debt Consolidation Calculator
- Monthly Payment Calculator
However, these mortgage calcutators can be cumbersome and time consuming.
Mortgage calculators should be used as a "tool" in helping you evaluate a particular scenario. The more accurate the information put into the calculators the better tool it becomes. Some useful calculators are "rent vs. own", "refinance", "Analyze credit card debt" "fixed rate vs. variable rate comparisons", "how much home can I afford" and many more. Many mortgage brokers have these calculators on their web sites or you can do a quick internet search.
Mortgage calculators are a great way to double check what your broker quoted you for a monthly payment. If you have any questions about the results of a mortgage calculator your mortgage broker is the best person to talk to about it.
Mortgage calculators can show you some basic numbers. However they do nothing to show you the whole picture. It is important to speak with a qualified professional to get the best loan you deserve.
Mortgage calculators are much less useful for calculating the payments on today's hybrid fixed rate, adjustable rate mortgage and option arm loans, home equity lines of credit, etc. To find out what a loan program will really cost you, and to avoid the pitfalls associated with mortgage calculators, contact a loan officer today and we'll be happy to guide you.
There is numerous calculators out there that you can use to see how much equity you have, or to check if refinaces and lowering your interest rate will save you a couple hundred dollars. These calculators are only estimates, for accurate result contact your mortgage broker for more information.
It's always best to speak to a mortgage professional who understands what mortgage calculations meet your needs. Some mortgage professionals can perform a Total Cost Analysis.
Mortgage calculators can serve a simple purpose if you know what to use them for. Most calculators are designed to give you a payment based on very general basic information you enter into the program. The key piece of information you will need is the interest rate. If you are not approved for a loan and/or are not locked into a rate, anything you put in will just give you a payment based on the guess you entered. Consult with a mortgage professional, they will be able to give you a more accurate idea of what to expect for a mortgage payment, and they can cover other scenarios such as interest only which may not be an option on the calculator you use. Feel free to check the information the mortgage professional tells you with a mortgage calculator, you will need to know the loan amount, interest rate and term (or length) of the mortgage.
Mortgage calculators can be used for wide variety of purposes. You can use the debt consolidation calculator to see how much money you would save if you were to consolidate your credit cards, car payment and other debts under one loan. The savings are usually substantial and can save you thousands over time.
Online Mortgage Calculator results should only serve as a general guideline. They offer simple calculations that ignores your other financial goals, such as your retirement plan and children's college fund. You should realistically scrutinize your budget and goals. A prudent homeowner would never let some online Loan Calculator make that type of financial decisions.
Taking the time to figure out a payment with an online mortage calculator is great! It allows you to see what the payment will be without the worry of a sales pitch. However there are sometimes things that go into a payment that you may not think of. Once you have a base payment to work with, make sure you contact your mortgage professional to confirm the numbers are accurate. Many calculators do not take into consideratin taxes, insurance, HOI payments etc.
The debt consolidation calculator allows you to see your effective interest rate and savings in comparison to your current situation. This effective interest rate allows you to understand how refinancing may be much more in your favor despite possible rising interest rates.
Another common calculator is called the blended rate calculator. This is used when a borrower is getting two mortgages at once, usually a first mortgage to 80 per cent loan to value and a second mortgage for the remainder. The blended rate calculation lets the borrower know the cost of the money for the entire loan.
Using a mortgage calculator - If you are using a hand-held financial calculator (not an online version), you will need to be familiar with the different buttons used in a calculation.
Most financial calculators will have buttons labelled, "N, I/YR, PV, PMT, FV".
N stands for the number of payments (360 for a 30-year mortgage).
I/YR stands for Interest Rate.
PV stands for Present Value (the amount financed).
PMT stands for Payment.
FV stands for Future Value. This is usually set to 0 for mortgage payment calculation purposes.
A mortgage calculator will only tell you very basic information about your loan. There are other things that play into what the loan will actually cost you. A mortgage professional can help you use that calculator and get an accurate monthly payment.
The calculator will help you get the basic information. However how to correctly interpret what that information means to you and your goals often takes the help of a mortgage professional.
Mortgage calculators are great tools for calculating basic mortgage payments to give you a simple idea of roughly how much of a mortgage you might be able to afford. However, there are a lot of other factors that need to be considered, that many times only a mortgage professional can correctly account for. Some of the other items that need to be considered are, how much are the property taxes on the home you are looking to buy. This needs to be considered into your monthly mortgage payment. Also, how much is the homeowners insurance going to be. This is another item that is commonly included in your mortgage payment. One other item is will you have to pay private mortgage insurance, also known as PMI, and if so how much. Your credit, credit score, and your loan to value on your loan will play a significant role in determining how much the private mortgage insurance is going to cost you. Therefore, there are many different factors that will change the payment from the simple mortgage calculator that you may use, and the best way to find out how much of a home you can comfortably afford is to seek the assistance of a mortgage professional.
While a mortgage calculator is a very helpful tool in figuring out monthly payments, it should never be used in place of a mortgage loan professional. When calculating affordability, mortgage calculators do not take into account, for example, what portion of his income should a homeowner put away to achieve his retirement plans. A savvy homeowner never let a mortgage calculator tell him how much mortgage he can afford.