Welcome to Mortgage Calculator Guide
Mortgage Calculator What Can I Afford Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Understanding the Mortgage Amortization Calculator
from:Most mortgage brokers, banks, and other loan institutions display a mortgage amortization calculator on their websites. Amortization is the principal of a loan that is being paid out over the term of the loan. An amortization table can show you at a glance how your principal will decrease as you pay monthly payments on your loan. You can get an idea of the amount of equity you will gain from your home as your principal is paid down on the note.
To use a mortgage amortization calculator, you go online and type in the information the electronic form asks for. It calculates the reduction of the principal of the mortgage by deducting the same payment amount month after month. Depending on the lending company and the type of mortgage amortization calculator, the formula it uses to calculate amortization may be different.
The mortgage amortization calculator software contains areas for data entry. There will be data entry for principal; interest rates; number of monthly payments; total number of payments for the term of the loan; the payment amount; and a balloon payment if applicable.
The software determines, by the data you enter, what the annual percentage rate (APR) will be, and that number is divided by the payments for each year of the loan. The mortgage amortization calculator calculates the number of months in a year by the number of years in the term of the mortgage. If you want to buy a home with a 30 year mortgage the mortgage amortization calculator will calculate the term into 360 monthly payments.
If you are interested in a mortgage loan that runs or a year or more with a balloon payment at the end, you must enter that data so the mortgage amortization calculator, such as the number of years you want the loan to run before the balloon is due, so the software knows how to calculate the loan. At the end of the contract the balloon will be due, and you will either have to make the payment in one lump sum, or refinance the loan. If you do not indicate there is a balloon payment the software will calculate the loan as if there is no balloon at the end of the mortgage.
Most amortization calculators want you to enter the number of dollars without the dollar signs and commas. If the loan you are requesting is $750,000.50 you would enter the amount in the data field as 750000.50. To determine all the unknown data, the mortgage amortization calculator works out the math by the known data that you supplied. These calculators are an excellent tool to help you determine amount of house you can afford to buy, with payments you can live with.
Mortgage Calculator What Can I Afford Specific links
Mortgage Calculator What Can I Afford News
First Person: Staying Put Will Save Us $70,000 in Mortgage Interest
We don't plan to sell our Florida home until the housing market here recovers. While we wait for prices to recover, we have decided to pay down our mortgage. According to a recent article from Bloomberg, home inventories are low because a lot of homeowners such as us are reluctant to sell in a buyer's market. By staying put, I think we can come out further ahead financially.
Read more...Use tax refund to cut my mortgage payment?
Dear Debt Adviser,I am a first-time homeowner and just received a $5,000 tax refund. Is there a way to use it to lower my mortgage payment (not the length of time I pay)?-- Marci Dear Marci,As a first-time ...
Read more...How much you need to save for retirement
Follow this guide and work out exactly how much you need to save for a comfortable retirement.
Read more...Why You Might Never Want to Pay Your Mortgage Off
A couple of weeks ago, I responded to a couple of questions about paying off your mortgage early. This week, I got the opposite question. Given record low mortgage rates, does it even make sense to ever ...
Read more...What housing bubble?
Easy access to mortgages has been driving the hot housing market for years.
Read more...