Using a Mortgage Calculator Tips

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How Do I Use a Mortgage Calculator?

How To Use a Mortgage Calculator

While mortgage calculators can look a bit different from each other, they all work approximately the same way. You enter a few pieces of data and the software will calculate the missing piece of information. For instance, say you want to find the estimated monthly payment you'd have if you borrowed $200,000 at 6.25% for 360 months (30 years).

Most mortgage calculators will have areas for you to enter the amount ($200,000), the interest rate (6.25%), and the term (360 months). Tell it to “calculate” and it will tell you that your estimated monthly payment will be $1,231.42. Do not worry if you try a few different calculators and the payment varies by a small amount. Calculators use different numerical rounding rules, so the resulting payment may be slightly different.

Some mortgage calculators allow you to find out how much mortgage loan you can afford based on current interest rates and your gross monthly income. Others may allow you to enter a payment you can afford, after which they will calculate the maximum loan amount you can expect to borrow at current interest rates. The software allows you to change any component (amount, interest rate, term, etc.) to calculate different monthly payments. This helps you compare different mortgage programs (fixed rate and adjustable rate) to help you find the right loan for you.

Why would I use a mortgage payment calculator?

Using a Mortgage Payment Calculator

For people looking to know what their mortgage payment would be depending on different scenarios, a mortgage payment calculator is a great utility. Using a mortgage payment calculator is easy. All you will need is the calculator and a few pieces of information with which to feed it. Here is a quick guide to using a mortgage payment calculator.

  • First, find a good calculator. There are free ones available on the Internet or you can purchase one for yourself.
  • Once you have the calculator, you need to input the information for the loan details. Know your purchase price, interest rate, term or length, and down payment. With these pieces of information, you can calculate your monthly mortgage payments.

You can change each of these factors to see the differences between monthly payments with difference scenarios. Be sure to work with each of the factors until you find the best scenario for your home purchase.

What are the benefits of an interest only mortgage calculator?

Following Changes with an Interest Only Mortgage Calculator

Interest only mortgages are a great option for anyone looking to keep their required monthly payments lower. However, these mortgages do not remain interest only forever. Usually, in a matter of months or years, the homeowner will face a payment change that will increase greatly. How are these homeowners to keep up with these adjustments to their payments? With an interest only mortgage calculator, that's how.

An interest only mortgage calculator can help you stay in tune with rate changes that arise when your interest only period expires. Sometimes, these changes can be quite extreme. If you know what you will be facing, you can make tough choices easier. Know whether you would be better off refinancing or selling. Know if you will even be able to still afford your home once you are required to make principal payments. Take advantage of an interest only mortgage calculator if you are in this situation. There is no need to be caught by surprise. All it takes to prevent that is a little preparation and knowledge. An interest only mortgage calculator can give all of that which you need.

How can I best utilize an interest only mortgage calculator?

3 Tips to Using an Interest Only Mortgage Calculator

Interest only mortgages are prevalent in a current market where interest rates are so low. Using an interest only mortgage calculator can help you get a clear picture of your mortgage situation from the beginning of your loan on through until the end. Here are three quick tips to using an interest only mortgage calculator.

  • Know your interest only term. For the first part of your loan's life, you will only be making payments towards your accrued interest. Whether you have a 6 month or 10 year interest only period, use an interest only mortgage calculator to figure the payments you will have during this period.
  • Stay ready for after the adjustment. Once your interest only period ends, you will see a great increase in your monthly payment. Using an interest only mortgage calculator can fill in the blanks as far as what your new payments will be. Be sure to plug in the reduced term remaining on the loan to see what your accurate payment will be.
  • Refi or Stick It Out? An interest only mortgage calculator can let you know if you would be better off refinancing to get out of the adjustment to your payment or riding out the loan once it adjusts. This will depend on the current interest rates vs. the rates when you got the original loan.

Use the calculator to plug in the data and see what your best move is.

Should I use a mortgage interest calculator to calculate my adjustments?

Getting an ARM – Get a Mortgage Interest Calculator

Homeowners on the verge of coming out of an adjustable rate mortgage are gearing up to face regular changes in their mortgage payments. If you are coming out of your fixed period and your mortgage is about to begin adjusting, get yourself a mortgage interest calculator. The regular adjustments will have large effects on your payments each month, and a mortgage interest calculator will let you keep from any surprises.

If you want to keep one handy, you can purchase a mortgage interest calculator from Office Depot, Staples, or any other retail office supply store. If you only need to use one periodically, you would be better off using an online mortgage interest calculator. These are free and are easy to use while the former are fairly expensive and difficult to get the hang of. If you have an ARM, have a mortgage interest calculator on the ready. Keeping up with the rate adjustments and plugging them into your calculator will keep you ‘in the know' when it comes to your monthly mortgage payments.

Can I go online to find a mortgage broker or to get a quote on a home loan?

Go Online to Find Quotes on Home Loans

There are plenty of choices for mortgage brokers who can help you secure a loan at a low cost and at favorable rates. Best of all, you don't need to leave your home or apartment to find the right broker for you.

Online mortgage loan applications are available. It is possible to get quotes from lenders from around the U.S. By going through a mortgage broker online you will have the help of a licensed individual who works with several lenders to get the lowest rates for clients. There are specific programs for homebuyers with bad credit, or for homeowners who want to refinance.

Should I use a mortgage amortization calculator to compare different loan scenarios?

Compare Loans with a Mortgage Amortization Calculator

A savvy home shopper will take their time and get the absolute best deal from both their home and their mortgage. Anyone who would like to put themselves into this category would be smart enough to compare multiple mortgage options using a mortgage amortization calculator. Using a mortgage amortization calculator is the easiest way to know the differences to your bottom line between various mortgage options.

For those who are wondering, ‘mortgage amortization' refers to the maturation of a loan over time. As your principal balance goes down, the details of each month's payment will change. A mortgage amortization calculator can show you these changes instantly for the whole life of the loan. When comparing multiple mortgage terms and scenarios, a mortgage amortization calculator is an essential tool. If you are being presented with multiple mortgage options by your broker, be sure to see a full mortgage amortization schedule. If one isn't provided, you can make one yourself using a mortgage amortization calculator. You can find them for free online from many lenders and financial institutions looking to help you.

What are the benefits of a mortgage calculator?

Benefits of a Mortgage Calculator

Getting a mortgage is usually the largest financial move that most people make. With the magnitude of the purchase, nobody should go in blindly. A mortgage calculator can help you know the answers that too many people rely on others to provide. There are many benefits to using a mortgage calculator. Here are a few. Interest rates change on a daily basis.

If you are late on locking in a rate, they are sure to change for the better or worse. One way or another, don't you want to know what the changes will mean to your bottom line? Of course you would. Here is the first benefit of a mortgage calculator; self reliance. If you see rates change, would you rather have to call up a broker to know how the change will affect you or just pick up your mortgage calculator? I promise, the latter is far easier to get a hold of on a regular basis.

Another huge benefit to using a mortgage calculator is for refinance loans. People who are looking to better their financial situations are often refinancing their mortgages these days. If you are in this situation, using a mortgage calculator can show you the differences that a refinance could make for you. It is always best to get professional assistance when you are ready to refinance, but using a mortgage calculator can give you a head start.

Can a mortgage amortization calculator help me choose between a 15 and a 30 year mortgage?

15 or 30 Year Mortgage? The Answer is in a Mortgage Amortization Calculator

If you are looking into making a home purchase and don't know what length mortgage would be best for you, use a mortgage amortization calculator to find your answers. Most people find themselves facing a decision between a 15, 20, or 30 year mortgage. The differences between these are simple to understand. Basically, you are borrowing the same amount of money one way or another.

The term is simply the number of years to pay off that amount. Therefore, the shorter the term the larger the payments. To make an accurate choice between mortgage terms, use a mortgage amortization calculator to see the differences to the payment depending on the loan length. Your loan amount will not change in each calculation, but the interest rate will. Get rate quotes for each length so that you can use your calculator for each. Once you get those numbers, the choice is up to you as to what makes you more comfortable; lower payments and a longer loan or higher payments and a shorter one.

Can a mortgage payment calculator help with my refinance?

Refinancing? Use a Mortgage Payment Calculator

For people looking to refinance their mortgage, the immediate savings can be astounding. However, you will want to be sure that you have an accurate view of what your payment changes will be when all is said and done. To be sure of what your refinance will do for your payments, use a mortgage payment calculator.

First, plug your current mortgage information into the mortgage payment calculator to make sure that you know how it works. If you do it right, you should be able to accurately calculate your current mortgage payment. Once you have the hang of it, plug in the details of your refinanced loan.

The changes to take into account in the calculation of your refinance are the principal, the down payment, the rate, and the term. Plug in these new details and your mortgage payment calculator can give you the real portrayal of what your new monthly mortgage payments will be. Good luck with the refinance!

How can I find an online mortgage calculator?

Finding an Online Mortgage Calculator

If you are shopping for homes and want a clearer picture of what your mortgage details would be depending on the home, using an online mortgage calculator is the best way. There are thousands of websites that offer consumers the use of an online mortgage calculator and each has variations that may be beneficial for you. Here are a few places to start.

First, check with large financial websites such as These types of free resource websites can give you a full range of mortgage calculators for fixed, adjustable, and interest only mortgage loans. You can usually change the values for down payment, rate, and term. If you strike out at finding these sites, jump onto the search engines such as Google or Yahoo and search for ‘mortgage calculator'. You will instantly get thousands of results.

An online mortgage calculator is a great tool, but you can also purchase a mortgage calculator from any office supply store. These calculators have pretty big instruction manuals, but if you are up for it, it is always handy when shopping for homes to be able to know numbers ‘on the spot'. Knowing right there what you can afford could make the difference between snagging that great deal and missing it.

Should I use a mortgage interest calculator to choose between a fixed or adjustable rate?

Fixed or ARM – Choose with a Mortgage Interest Calculator

Not all mortgage interest rates are made the same. Not all mortgage programs are either. Most people will have a choice between a fixed interest rate and an adjustable interest rate on their mortgage. If you are trying to choose between these two options, using a mortgage interest calculator can answer some of the biggest questions for you. Calculating a fixed interest rate mortgage loan is simple with a mortgage interest calculator. Simply enter all of the mortgage information and you can see what the payment will be for the life of the loan.

Using a mortgage interest calculator to examine an adjustable rate mortgage (ARM) is a little more complicated. First, calculate your introductory rate the same way that you would calculate your fixed loan. This will be the payment for the length of the introductory rate. Now, calculate your worst-case-scenario adjustments for the future of the loan. This is done by adjusting the rate to the maximum allowable adjustment. All ARMs have limits on their adjustments, so use this number to see the worst case scenario. This is the number to go on for the future of your loan. It is up to each home buyer to decide what type of mortgage rate is best for them. However, you can make a smarter decision on your home loan by using a mortgage interest calculator before you sign on the dotted line.


Home Loan Calculator

Purchasing a home is an exciting but yet scary task for all consumers. Consumers could use all the necessary resources possible in making an educated decision on the kind of home they want. This is where a home loan calculator can come in handy.

A home loan calculator will help give a better idea of the budget involved in purchasing a home. It is better to use a home loan calculator then a standard calculator because there are many specific elements that need to be calculated. Private Mortgage Insurance is a prime example of this. It is money that is non refundable and does not count toward your principal or interest.

The principal also needs to be calculated but this is much easier to do. If the price of the home is 100,000 and you calculate that by three hundred and sixty months, the principal will come to a monthly payment of $277.77.

An interest rate is another tricky factor that should be calculated by a home loan calculator. It simply determines the interest amount one will pay each month.

What Can a Mortgage Calculator Do for Me?

How a Mortgage Calculator Could Help You

Mortgage calculators can be very helpful before you embark on your “official” search for the right mortgage loan. There are four primary components to a mortgage loan:

  1. The AMOUNT you want to borrow.
  2. The INTEREST RATE you want or expect to pay.
  3. The TERM, in months and/or years, you want for repayment.
  4. The MONTHLY PAYMENT of principal and interest.
Most mortgage calculators use the same methodology. They basically tell you to “give me three components and I will calculate the fourth for you.” Therefore, if you want to see what a monthly mortgage payment will be if you borrow $200,000 at 6.0% interest for 360 months (30 years), give the calculator this information and it will calculate your monthly payment. You might also want to learn how much you might be able to borrow, depending on your current income and debt. Finally, you might want to use a debt consolidation calculation to see how much you might save by using a mortgage loan to lower your debt and monthly payments. Using different scenarios, without the inherent pressure of discussing these issues with a loan officer, will give you a good basis to conduct a successful search for the mortgage loan that is just right for you.

Where Can I Find a Mortgage Calculator?

Locating a Mortgage Calculator

Mortgage calculators are wonderful tools to give you an idea of what a particular mortgage loan will cost you on a monthly, annual, and long term basis. There are many places to find some excellent versions. An excellent example is the one offered by, which can be tailored for both home purchases and refinances. This model also allows you to estimate your real estate taxes and insurance cost to give you a full monthly payment estimate. Another excellent online calculator can be found at There is not just one calculator at this site, but a variety of choices, including debt consolidation, refinancing, amortization, and financial calculators. A third location to find an easy usable mortgage calculator is at Here you can easily check current interest rates for a number of different mortgage products, which is very convenient and helpful for your estimated calculations. The website addresses of these recommendations are shown below.

There are many, many websites offering mortgage calculators of varying ease of use and accuracy. The ones mentioned herein are quite good and accurate. But, don't be shy, you can find many others with a little web searching and you might find one you like even more.

What do mortgage calculators do?

Mortgage Calculators Have Many Uses

Try your hand at an online mortgage calculator. These calculators have a variety of uses for obtaining online mortgage loan information. Here's what you can do with an online mortgage calculator.
* Adjustable rate mortgage calculator. Since interest rates vary with an adjustable mortgage rate, this calculator helps figure monthly payments over the life of the loan.
* Mortgage payment calculator. It estimates monthly payments and may produce mortgage amortization schedules.
* Mortgage loan rate calculator. Helps consumers get details on mortgage loans and mortgage loans for bad credit. It can help people find favorable quotes.

Can a mortgage calculator help me figure my monthly payments?

Mortgage Calculators Help Figure Your Costs

Find a mortgage calculator online to learn your monthly payments on a mortgage loan. You will need to fill out the mortgage amount, mortgage term and interest rate. Enter the requested information and click "calculate" to see the results. Some mortgage calculators offer an amortization feature that lets you create an amortization table for your loan.

There also are online mortgage calculators that figure the right refinancing rates for you; the best point/rate combination, and whether it makes more sense to pay off a mortgage over 15 or 30 years.

Is there a government-sponsored source that offers guidance for homebuyers?

HomePath is Fannie Mae's Online Guide for Homebuyers

Fannie Mae offers an online guide that takes borrowers through the process of applying for a mortgage. Fannie Mae is a private company established by the federal government in 1938 to ensure that mortgage money is available to Americans in every community.

The Fannie Mae HomePath Guide provides content that explains how to shop for mortgages and get the best refinancing rates. It offers easy-to-understand explanations of the homebuying process and provides a handy mortgage calculator, so consumers can figure how what they can and cannot afford when buying a new home.

What kind of online mortgage loan information can I find?

Online Mortgage Loan Advice Helps Consumers

Before you go to a lender, try your hand at creating your own online mortgage loan. It will give you a good idea about the best terms and rates, and the payments you can afford.

By enterng information into a mortgage calculator, you can get the details you need. You can use this online mortgage loan information when you negotiate with a lender or mortgage broker.

Mortgage calculators are easy to find on the Internet. They also are easy and fun to use. But don't take these calculators as final word - mortgage calculators are simply here to advise you on your next steps in the refinancing process.

Let's say you don't know whether to get a home equity loan, which is a lump sum of money, or an home equity line, which is a line of credit. Some online mortgage calcultors can help you answer that question before you ever sit down with a mortgage broker or lender.

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