Benefits of the Mortgage Calculator
By Steven De Nazareth
Updated: July 25th, 2019
Mortgages come in different forms and sizes and if you are not careful you could be down an uncharted path that could spell doom. It makes sense to do some number crunching to ensure that you know exactly what is due. But this task could be extremely difficult for some as a simple calculation error could cost you dearly. This takes us to the point that there is a one-of-a-kind interactive mortgage calculator that would help you understand exactly what you are signing up for. Right from the word go, you will be able to determine which is the right mortgage for you and whether you are paying an interest rate that works in your favor.
This is usually the most expensive asset that any family would have to incur in their lifetime. Having taken this into consideration, these mortgages can last anywhere from 15 to 30 years at a stretch and therefore must be taken seriously before you make the downpayment. With this easily relatable mortgage calculator, you should be able to figure out the right mortgage plan for you. Why’s it great? A mortgage calculator takes away the headache of having to determine all the numbers behind your payments and you get all these details in seconds. Why let this cost you when you have a way to determine payments that work in your favor and ensures that you increase your savings. Who knows! You could come out with a cheaper mortgage plan or figure out a mortgage that can be paid out sooner at a lower cost.
Using the Mortgage Calculator
You should know that the main intention of this mortgage calculator is to calculate the interest due. This can be achieved by entering the three fields which include the loan amount, interest rate, and term. By loan amount, we mean the Principal and the total amount of interest on the loan is known as the Interest Payable. Once you fill in the term or the period desired to pay back the loan amount and interest the scale decides if it would tip in your favor. With this calculator, you can figure out the interest payable and the total payable amount. Also, you can arrive at the monthly payment based on the term of the loan. You should know that the monthly payments are based on the monthly payment which has dedicated amounts to pay off the interest and principal.
Simply enter the loan amount, interest rate, and the term of the loan and in a matter of seconds, all the calculations would be done in the background. This will help you on your way to choosing the best possible mortgage and the most suitable payment methods. There are several features that this interactive mortgage calculator offers. From a see-saw, a pie-chart, and a payment schedule, you will get all the details covered on whether you have selected the right mortgage plan.
Importance of Mortgage Calculator
In order to ensure that you have enough to finance your home, you should ensure that you do not have do not pay high-interest rates. Interest rates could differ based on the lender that you finally decide upon. This makes it necessary to compare interest with several lenders and determine the exact break up of the principal and interest. There’s no better way to do this than a mortgage calculator that can do these calculations for you. With accuracy down to the last decimal, it will save you a ton of time and effort to do this manually and assures you that the numbers are spot on.
There are a number of benefits that the mortgage calculator has to offer. These can be simply labeled in terms of:
- Accuracy: Mortgage Calculators are known for their accuracy. With 99.9% accuracy, you are sure that you have all the right numbers to make your mortgage payments. Since this is an automated tool, the margin of error is low and could usually be caused if you enter the wrong data in the fields. Quite simply, calculators, excel sheets, papers and outdated formulae have to give way to the latest mortgage calculators.
- Freedom of Choice: This calculator allows you to act at your own discretion. This means that you can do the mortgage calculations without external help. This helps you choose among the best lenders and helps you take advantage of the best deals.
- Compare Rates: The right combination of rate and term of the loan will help you determine the best mortgage plan. This is where online mortgage calculators make it easy for you to carry out comparisons to seek better mortgages. In time, you will make the right decision and choose the perfect plan.
- Variables: There are a few variables that come into play when you determine the best mortgage. This could be the loan amount, term and the rate of interest. By changing these values you will be able to determine the best mortgage. Entering these values will help you determine its affordability.
- Time and Money: By using the internet you would have access to these mortgage calculators that can save you a lot of time. Also, these calculators are available free and it can be accessed from any web browser.
Why Use This Interactive Mortgage Calculator?
With this mortgage calculator, you can use an interactive see-saw, pie chart, and payment schedule to determine the best mortgage plan for you. By taking advantage of this calculator you can rearrange the values in the fields and then compare these variables with actuals to get the best mortgage. Here are a few features that should excite you:
Based on 3 fields namely; the loan amount, term, and rate of interest you can determine if you have taken a mortgage that is worth your while. How? A see-saw with a home on one side and piggy bank on the other will slant based on whether it is in your favor or not. When the home is up and the piggy bank is raised then it indicates that it is lighter on the pocket. This shows that the interest is lower than the principal and it would be a good financial investment. On the other hand, if the piggy bank is up and the home is down then this could cost you. This means that interest is higher than the principal. But when the see-saw is at the 180-degree level, then this indicates that the interest and principal are equal and this shows that your savings are not low or high.
This pie-chart is positioned just below the see-saw, it shows the monthly payment and showcases the total payable amount towards principal and interest. The principal is represented in blue while the interest is shown in red. On the right side of the pie-chart, you can see the amounts for the Principal, Interest Payable and the Total Payable.
With the payment schedule, you can edit the month and year in which you would like to take up your mortgage plan. This will help you determine when to start your mortgage. It features a graph and a table.
i) The graph provides a representation of the whole term. Every bar provides you with information on the mortgage for that particular year. The bar at the extreme left represents the year that the mortgage begins and the last one would be the last year of the mortgage term. Here you can determine the principal and the balance that needs to be paid off at the end of each year.
ii) The table provides you with a split up of the total mortgage. Each column indicates the different parts of the mortgage breakup. Here you can figure out the mortgage term, principal paid, interest paid each year and the total payment. Also, you can find out the status of the mortgage in terms of installments already paid. The best part of the table is that you can also get a monthly breakup.
HomeWarrantyReviews.com’s Mortgage Calculator
Use the HomeWarrantyReview.Com interactive mortgage calculator to get all the minute details behind mortgage cost. This means that you should fill in the fields of principal, interest, and term then scroll down to check the schedule based on the month and year. Once this is done you can determine when the mortgage gets paid up, the percentage paid, and the balance at any point in time. Once all of this is done, you can take a print out of the schedule and keep it for future reference. Don’t miss out on this one-of-a-kind interactive mortgage calculator.
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