Any one who wants to take a home mortgage, must be able to estimate how much money he has and how much he can spend for repayment of loan. The money to be repaid includes the principal amount and the rate of interest on home mortgage. It depends on payment terms and period. The repayment can be made on a monthly, bi-monthly, half-yearly or yearly basis. These calculations can be effectively done using mortgage calculator.
Depending on the type of home mortgage a person decides to go with, there are different mortgage calculators to help him with calculations. There is a mortgage calculator to help a buyer decide how much he can afford for a house. In this, there are two types - one is to help the buyer decide if he can afford the asking price of a house and the other is to help him know how much of a down payment he will need to make. This will help him decide on not only what type of real estate to look for but also how much to save up for a down payment before applying for a home mortgage.
Another type of mortgage calculator is to help a person consolidate all non-mortgage debts. This type is further sub-divided into 3 categories - one to help him consider the option of bringing non-mortgage and mortgage debts together into one consolidated amount; the second one to help consider a refinance option of taking another home loan or by cash out and the third one for those who have two existing mortgages and want to find the ways of paying off the older one.
Popular mortgage calculators are the ones that are meant for calculating each type of mortgage like - fixed arm mortgages, adjustable arm mortgages, flexible amortizations etc. There is a mortgage calculator to help the borrower determine how much he can save by making additional payments for the principal amount. This calculator will vary depending on the period of payments - e.g. bi-weekly, extra monthly, etc. The refinance mortgage calculator is another popular tool for those considering if by refinancing a property, they can actually save money in the long run. Under this again there are two types of calculators depending on the refinance option the borrower chooses.
The insurance calculator helps the borrower know how many insurance premiums he will have to pay for the mortgage. The amortization mortgage calculator is used for calculating tax savings on interest and property appreciation. There is even a mortgage calculator that will help the borrower compare any two different mortgages and choose the better of the two that will suit him. For example one make comparison between adjustable and fixed rate mortgages or between government and private loans.
Fees and paying points add a lot to the mortgage amount being repaid and there is a mortgage calculator exclusively to calculate this amount for both FRM and ARM. Another mortgage calculator is used to calculate the feasibility of having short term as against a long term mortgage loan. These and other types of mortgage calculators are available exclusively on the websites of lending institutions. The potential borrower can use these calculators free of cost to determine his liabilities when taking a home mortgage.
To choose the best home mortgage, you should: * have a clear idea about your current and future financial situation * go through various financial journals and see the interest rate trend * know how much down payment you can afford to make for the house which depends on how long you plan to live in it. * know various types of mortgages available * decide which program will suit your financial position in the long run
To someone who is new to the field, these mortgage calculators, their uses and the mortgage schemes confuse him at the beginning. It is quiet difficult to know which type of calculator is used for which mortgage type, which lending institution to approach. It requires a lot of patience, perseverance and deep and long study of the real estate market to become of master of the art. You can also take the help of a real estate broker to have the guidance to go through the entire process of selecting the best home mortgage for your purpose.
