Mortgage Calculator: No More Guesswork
Author: Rony Walker
Do away with the guesswork on your refinance. Use the online
mortgage calculator to see how sums will add up towards a
30-year refinance loan term. The accuracy of the mortgage
calculator gives you the edge when deciding if you can or cannot
afford a refinance at this time.
Informed Decision-Making
It used to be, before the advent of the Internet, that
calculating mortgage rates was the work of a qualified
accountant or mortgage specialist. Borrowers had no clear idea
about the sums involved when they approached a lender for home
loan or a refinance. Borrowers were given the explanation as to
the workings of their loans for a specified loan term, and they
were primed what to expect when they opt for a particular
mortgage rate.
Today, it's totally different. Borrowers are now armed with the
knowledge of the different mortgage rates before approaching any
lender for a loan. Like them, you now have at your disposal the
service of the online mortgage calculator.
The online mortgage calculator gives a detailed summation and
explanation of your mortgage amortization for the different loan
terms you check out. Right there and then, you can figure out if
you can afford a mortgage. This will save you the trip to the
lenders to make inquiries, only to discover that you can't
afford a mortgage at present.
What To Expect From A Mortgage Calculator
An online calculator will give you the following information
after you have determined the suitable loan term:
1. monthly payment based on the selling price of the home.
2. interest rates.
3. downpayment percentage.
The results are often based on calculations on Private Mortgage
Insurance for loans with less than 20% downpayment and town
property taxes since these affect monthly payment for the
mortgage.
The user-friendly mortgage calculator will require you to input
the sale price of the home, percentage of downpayment, length of
mortgage, and annual interest rate. Let's say you are getting a
mortgage to finance the purchase of a $200,000 home. You can
only afford a $10,000 downpayment, and you choose a 30-year loan
term at a 7% annual interest rate. The calculator will show you
that the amount financed is $180,000 and your monthly payment is
pegged at $1,197.54 for the principal and interest only. Click
the box for calculation explanation and click calculate.
Immediately you will have the results. You will also be
informed that you need to pay PMI or Private Mortgage Insurance.
This will add $55 a month for every $100,000 financed. This
addition will bloat your monthly payments to $1,296.54.
By this time, you'll know if you can afford to get the loan. If
you have the 20% cash downpayment for the mortgage amount, you
will be saving thousands of dollars on your mortgage. The
mortgage calculator will then show a detailed summary of the
month number, interest paid, principal paid, and the remaining
balance from year one to the present year in detailed precision.
Do not hesitate to use the online mortgage calculator as this
is free, so you can now stop the guesswork.
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