A Payment Calculator is an important tool for budgeting your monthly expenses, such as mortgage or private mortgage insurance (PMI). A Payment Calculator can determine the amount you will be able to afford to borrow based on the monthly payment you have agreed to make. Most financial calculators will also have other helpful features, such as easy to understand explanations of how the calculations are done. There are several different kinds of Payment Calculators available to both consumers and real estate professionals. Here is a brief description of each type:
Fixed Term – This calculator is used to determine the monthly payment amount for a 30-year fixed mortgage. Most mortgages have a term of either five ten or fifteen years. You enter the time frame you want the loan for and then the Payment Calculator will determine how much your monthly payment amount will be at that time. If you want a longer term, such as twenty years, you simply enter the same number of years and the Payment Calculator will determine how much you will pay. If you want a shorter term, such as five years, you will have to input that information into the Payment Calculator.
Adjustable Rate Mortgages – Most Adjustable Rate Mortgages feature a variable rate that can be changed over time. The Payment Calculator will allow you to see how your payment amount will change over the course of the mortgage. This helps borrowers plan for these changes and helps them make a more informed decision about whether or not to purchase the home they want. Adjustable Rate Mortgages are considered safer than fixed rate mortgages. Adjustable Rate Mortgages can help borrowers lower their monthly payment amounts.
Hourly Rate Mortgages – This calculator is very similar to the Adjustable Rate Mortgages except that it allows you to enter specific information about your daily work schedule. You can choose to work seven days a week or only two days a week. In addition, you can enter information about your bank, the current interest rate, the length of your loan term and the amount you plan to borrow during the loan term.
Mortgage calculators offer quick, fun ways to figure your mortgage out. When you are looking for the perfect mortgage, it can be confusing and overwhelming. Using a free mortgage calculator can help make the process a little easier to understand. You can start by entering your loan information. Once you know what you have available in terms of money and value, you can plug those figures into a mortgage calculator to figure out your monthly payment. There is no need to worry about numbers as long as you enter them accurately.
As you research different loans and look at different offers, you will see that varying interest rates can change your monthly payments drastically. Entering accurate information in an APR calculator can help you make an informed decision about the loan you want. To learn more about choosing a mortgage and common mistakes to avoid, register for a free mortgage guidebook using the links below. If you would like to see what your monthly payment would be with all of the information in the book, register for a free mortgage guidebook using the links below. You will also get useful advice about registering for the best mortgage possible, along with helpful tools to help you manage your personal finances.