Are you planning to purchase a house but don't know whether you'll get the desired loan amount or not? If that's the case, then you need to opt for mortgage calculators. A mortgage calculator helps a prospective or existing real estate professional to calculate the loan that he'll get on a particular property. A home mortgage calculator helps in comparing expenses, payment schedules, interest rates to name a few. In addition to these, it also helps in determining the change in the time span of the mortgage loan by opting for extra principal payments.
What are mortgage calculators?
A mortgage calculator is defined as an automated tool which helps you to resolve the financial implications of fluctuations in one/more variables that is likely to come in case of a mortgage financing agreement. Some of the important variables are as follows-
- Balance in the loan and principal amount
- Cyclic interest rate
- Compound interest
- Total number of payments scheduled in a year
- Routine payment amount
Financial handheld calculators like Texas Instruments TI BA II Plus or HP-12C help in mortgage calculation. In addition to this, you will also find several online mortgage calculators as well as software programs that help you with mortgage and financial calculations. An online mortgage calculator helps you determine the total property that you can afford. Prior to providing the desired property to you, the lender generally compares your total debt load in a month and the total amount that you get in a month. With the help of a mortgage calculator you can add up your overall income that you receive in a month and finally compare this income with your debt payments scheduled for the same month. Over and above, a mortgage calculator also helps in prospective mortgage payment as well as other related housing expenses like homeownership dues, property taxes to name a few. You may test multiple interest rates and loan sizes. In general, lenders see to it that your debt payments don't exceed forty percent of your overall pretax income in a month. However, some lenders can help you with the loan amount even if your debt payments have exceeded fifty five percent of your total pretax income in a month.
Types of mortgage calculators
Given below are the different types of mortgage calculators that you can use to make a good home buying decision: