A document that specifies a particular amount of money that is used for the procurement of a property or house and a lien is placed on the property as a security for the repayment of the debit is called a mortgage. You can get a mortgage from almost anywhere – banks, financial institutions, building societies and even mortgage brokers.
A mortgage calculator is a used to assist the debitors (in this case home buyers) to calculate their monthly mortgage payments by using the principal, rate of interest and term as the variables. This helps the real estate owners (both current and prospective) to check how much loan they can afford to purchase a property.
A mortgage calculator can also be used to get a comparative cost between the interest rates offered by the various lenders and thus to determine the impact on the length of the mortgage loan of making added principal payments or bi-weekly instead of monthly payments. Besides the mortgage calculator is a programmed tool that helps the consumer to see the fiscal repercussion of changes in one or multiple variables in a mortgage financing arrangement.
The key variables are:?
* Loan principal balance
* Periodic interest rate compound interest
* The total number of payments in a year
* Total number of payments
* Regular payment amount
Financial calculators like HP-12C, Microsoft Excel sheet and the Web all can be used for the purpose of a mortgage calculator.
Home Finance of America has a few calculators that help the consumers with their financial queries. An affordability analysis can be achieved in a number of ways and the calculators discussed below can assist them to evaluate effects of the different variables when purchasing a house. Continue reading “What is a Mortgage Calculator?”