subject: Understand Your Loans With Mortgage Loan Calculator [print this page] Mortgage encompasses many aspects viz., loan amount, interest rates, tenure, fees, repayment etc. To have a comprehensive understanding on how each of these factors shall affect your finances, you can use mortgage loan calculators. It not only educates you but saves your time while dealing with mortgage lender.
How Much Loan?
Based on your existing and future finances, you can ascertain the amount of loan you shall be eligible for, using mortgage loan calculators. You can also arrive at the monthly installment amounts for the loan taken and you can check if you can make such payments.
What Form of Loan?
Most popular forms of mortgages are fixed rate and interest only mortgages. While a fixed rate mortgage amortizes over time, interest only loans require you to pay only interest portion on the loan. Each of these loans entails distinct calculations in terms of your monthly outflows and hence using loan calculators assist you to analyze which form is more suitable to you.
Which Mortgage Lender?
You can compare the interest rates, costs, fees, monthly installment amounts to be paid among various lenders, thereby enabling you to choose the most suitable lender.
How Much Equity?
As a norm, most mortgage lenders tend to lend up to 80% of the value of the property and the balance 20% you put in your equity. By using mortgage loan calculators, you can arrive at the amount required as your equity and plan your finances accordingly.
Using a mortgage loan calculator is very simple. You will have to just fill in the loan amount required, the amortization tenure and the probable interest rate. After deducting your equity from the value of the home, you can arrive at the loan amount, amortization tenure is usually 30 years and interest rates can be obtained from various mortgage lenders websites. Based on the above details, the calculator gives you the estimated monthly payments to serve your mortgage.
Though, mortgage loan calculator enables you to have a basic understanding of your mortgage, it does not give a precise amount of monthly installment. Your mortgage lender might charge you a different interest rate based on your credit rating and also other charges and fees are not considered by the calculator.
by: kellyprice1225
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