Description: A loan mortgage calculator can help you make a wise decision and choose the right loan for your needs.
Loan mortgage calculator: Useful tool to make a smart decision
Whether you’re buying a home for the first time or refinancing your existing mortgage, you would need a loan mortgage calculator to make various calculations. This tool can always help you make a wise home buying decision by comparing various loan products. Work out how much mortgage you can afford, whether it is sensible to rent or buy and which loan offer provides the minimum monthly payments.
Mortgage loan calculations are affected by different factors. You can reduce your payments or get a bigger amount of loan if you talk to a loan advisor in your neighborhood and follow his suggestions.
Different types of loan mortgage calculators and their uses
There are various types of loan mortgage calculators and all of them serve different purposes of the homebuyers. Given below are some common types of home loan calculators and their uses.
1) Mortgage qualification calculator
Helps you work out how much income you need to make so that you become eligible for the home loan you want.
2) Interest-only monthly payments calculator
By using this tool, you can see that the monthly payments for an interest-only loan might be low in the beginning, but how they go up when you begin paying off the principal and the interest rate is readjusted.
3) How much home you can afford (home affordability calculator)
Work out how much loan you can borrow on the basis of how much you earn and how much you owe.
4) Balloon mortgage calculator
Helps you calculate balloon loan payments. You would also know how much you are indebted to the lender when the balloon payment is due.
5) ARM calculator
It helps you calculate your adjustable rate loan monthly payments.
6) Rent or buy calculator
This tool helps you understand which option is more suitable for you – renting or buying a home, taking into account all the costs and tax benefits.
7) APR calculator
Helps you work out the annual percentage rate or overall borrowing cost of your home loan. You can choose a loan by comparing the APRs of different loans.
8) Loan refinance calculator
Know how much you can save by taking out a new loan at a reduced interest rate.
9) Loan comparison calculator
You can compare monthly payments of similar types of loans with varying interest rates to choose the right one for you.
