How a Mortgage Calculator Could Help You
Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Using a Mortgage Calculator and other Mortgages topics.
What Can a Mortgage Calculator Do for Me?
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:
- The AMOUNT you want to borrow.
- The INTEREST RATE you want or expect to pay.
- The TERM, in months and/or years, you want for repayment.
- 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.