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Using Mortgage Loan Calculators

Mortgage Loan Calculators

The Mortgage Loan Calculator helps you make budgeting easier. Use mortgage calculators online to figure out your monthly income, figure out the amount you can afford to borrow, calculate mortgage payments, find out if you qualify for a mortgage refinancing, and so much more. If you have good information it is very important to gather and compare mortgage loan offers before you accept an offer. When you find the best mortgage loan offer it will be time to talk with the lender about getting prequalified.

To determine the amount you will be able to afford to borrow, take the amount of monthly payments you pay each month and add it to the total of your debts. For example, if you have a credit card with a $500 minimum payment and take out a mortgage loan with a fifteen percent interest rate, you will be borrowing twice the amount of the minimum payment. If you were to use the Bank Rate calculator to figure out your monthly mortgage insurance payment, you would find that your mortgage loan payment would be anywhere from three to fifteen percent lower than the interest rate on your credit card. This allows you to save money on the mortgage insurance premiums each month. The calculator also determines your maximum monthly mortgage payments based on the amount you are able to borrow and the term of the mortgage.

One way to save money on your monthly expenses is to choose a longer mortgage term. For example, if you have a thirty-year fixed rate mortgage, figure out what your monthly expenses would be if you borrowed only twenty-five years and then left the loan term at thirty years. The mortgage calculator determines the amount of house payment you will be able to afford and allows you to choose a longer loan term. You may want to choose a longer loan term if you plan on keeping your home for the long haul or if you have enough resources to pay a larger down payment.

The calculator can also determine your maximum out-of-pocket interest rate for your mortgage loan. Remember that your lender will adjust your interest rate from time to time, up or down, based on the economy and prevailing interest rates. Be sure to check how your interest rate is already set and compare it to your current interest rate, to see if it's still too high. To change your interest rate, contact your private mortgage insurance company.

A mortgage calculator can help you budget for future costs, such as future health care costs, taxes, homeowner's insurance premiums, repairs, etc. It can even calculate how much house you will need to own in order to live comfortably. It takes into account the current condition of your home, the amount of cash you have saved, current mortgage payments, any loans you have, your life expectancy and other factors. It can also project your retirement years and your children's future home buying needs. Using a mortgage calculator can help you budget for your house in advance and save you money by avoiding unforeseen costs.

How long does your mortgage loan term last? Usually, mortgages last between five and fifteen years. Most mortgages have a term of five years; however, there are some mortgage loans with shorter terms or no term at all. Your lender can explain the details of your mortgage loan terms and make this modification to your mortgage loan.

What are the additional payments? These are interest rate plus points (annual percentage rate), points waived (if you are paying a down payment), closing costs, insurance premiums, private mortgage insurance, appraisal and insurance, private mortgage insurance premiums. You can add these amounts to your mortgage loan without changing the interest rate, as they are already included in the mortgage interest rate. However, if you do decide to change these amounts, your mortgage calculator will show how the new payment will change your monthly mortgage payments. For example, adding the extra payments to your mortgage loan would cost you an extra $50 a month, which is why it is important to understand what the interest rate and extra payments will do to your mortgage balance.

Is a higher percentage of your home equity required? Your calculator will be able to show you if your mortgage requires a higher percentage of your home equity to cover your monthly mortgage payment. The calculator will also show you if a higher percentage of your home equity will reduce your mortgage principal, which means that you will save more money on your monthly mortgage payment.

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