Mortgage calculators are helpful when you’re looking for the right mortgage that best suits your home buying needs. When considering a mortgage loan, knowing how much money you have and will have and how much you are willing to pay for the loan including the interest and principal is very important. To help you decide on projecting how much you will be paying, various mortgage calculators are available. Below is a short list of mortgage calculators to help you make your financial decision.
Borrowers Ability to Afford a House
There are two types of calculators you might be interested in. There is a mortgage calculator that determines if a borrower can afford a house and mortgage calculator to help the borrower determine if it is better for him to make a small down payment or no down payment at all or save up first, then make a bigger down payment later on.
How Much Can I Afford
Consolidating Non-Mortgage Debt
There are three types of mortgage calculators for consolidating non-mortgage debt. The first one is used for borrowers who want to consider merging non-mortgage debt into their new mortgage. The second type of mortgage calculator is for those who want to consider refinancing their mortgage by cash-out or by taking another mortgage. The third kind is for borrowers who already have 2 mortgages and are considering other options to help pay off the 1st mortgage.
Should I Consolidate My Debt?
Mortgage Refinance Calculator
This type of mortgage calculator can be applied to a borrower who wants to refinance a mortgage or 2 mortgages. Other calculators are used to determine if refinancing one mortgage into two can reduce costs while others are used to determine if cash-out refinancing is better than deciding to take on a second mortgage.
Should I Refinance?
Monthly Payments on a Mortgage
The type of mortgage calculator to be used to calculate monthly payments on a mortgage will depend on the terms you choose. There is a mortgage calculator for fixed rate mortgages, adjustable rate mortgages without negative amortizations, adjustable rate mortgages with negative amortizations, adjustable rate mortgages with flexible amortizations and mortgage payments with temporary buy downs.
What Will My Payment Be?
Mortgage Prepayment Calculator
This kind of calculator will help you determine how much interest can be saved should you decide to pay an additional amount for the principal value during payment. The mortgage calculator varies depending on the number of payments a borrower is willing to give. These are extra monthly payments, bi-weekly payments applied monthly, bi-weekly payments applied bi-weekly and extra monthly payments to be paid in a specific period.
There are 2 kinds of mortgage calculators to determine amortizations. One determines the savings a borrower can have on his tax on the interests and the second mortgage calculator determines the appreciation of property being mortgaged.
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%.
ARM vs. Fixed Mortgage Calculator
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. 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.
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. 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.
The mortgage calculator to compute points and fees in a mortgage is used to determine the rate of return of ARMs (Adjustable Rate Mortgages) and FRMs (Flexible Rate Mortgages) and the amount that can be saved or lost by using paying points for interest reduction on FRMs.
Should I Pay Points for a Lower Rate?
Comparison Mortgage Calculators
As the name itself suggests, this mortgage calculator allows you to compare several mortgage types and find out what suits you best. There are different types of calculators that compare the various mortgages that include amortizations and non-amortizations, government and non-government loans, fixed rate and adjustable interests. 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.
You can find these mortgage calculators and other various calculators on the Internet. Companies such as Freddie Mac, Fannie May, Real-Time-Rates.Com and Mortgage-X have interactive pages in their websites where you can do your calculations online. Aside from these, other sites such as HSH Associates give free downloads of their loan calculators.
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