Title: 
Mortgage Calculator: No More Guesswork

Word Count:
505

Summary:
Do away with the guesswork on your refinance. Use the online mortgage calculator to see how sums will add up towards a 30-year refinance loan term. The accuracy of the mortgage calculator gives you the edge when deciding if you can or cannot afford a refinance at this time.

Informed Decision-Making

It used to be, before the advent of the Internet, that calculating mortgage rates was the work of a qualified accountant or mortgage specialist. Borrowers had no clear idea a...


Keywords:
Mortgage calculator


Article Body:
Do away with the guesswork on your refinance. Use the online mortgage calculator to see how sums will add up towards a 30-year refinance loan term. The accuracy of the mortgage calculator gives you the edge when deciding if you can or cannot afford a refinance at this time.

Informed Decision-Making

It used to be, before the advent of the Internet, that calculating mortgage rates was the work of a qualified accountant or mortgage specialist. Borrowers had no clear idea about the sums involved when they approached a lender for home loan or a refinance. Borrowers were given the explanation as to the workings of their loans for a specified loan term, and they were primed what to expect when they opt for a particular mortgage rate.

Today, it’s totally different. Borrowers are now armed with the knowledge of the different mortgage rates before approaching any lender for a loan. Like them, you now have at your disposal the service of the online mortgage calculator.

The online mortgage calculator gives a detailed summation and explanation of your mortgage amortization for the different loan terms you check out. Right there and then, you can figure out if you can afford a mortgage. This will save you the trip to the lenders to make inquiries, only to discover that you can’t afford a mortgage at present.

What To Expect From A Mortgage Calculator

An online calculator will give you the following information after you have determined the suitable loan term:

1. monthly payment based on the selling price of the home.
2. interest rates.
3. downpayment percentage.

The results are often based on calculations on Private Mortgage Insurance for loans with less than 20% downpayment and town property taxes since these affect monthly payment for the mortgage.

The user-friendly mortgage calculator will require you to input the sale price of the home, percentage of downpayment, length of mortgage, and annual interest rate. Let’s say you are getting a mortgage to finance the purchase of a $200,000 home. You can only afford a $10,000 downpayment, and you choose a 30-year loan term at a 7% annual interest rate. The calculator will show you that the amount financed is $180,000 and your monthly payment is pegged at $1,197.54 for the principal and interest only. Click the box for calculation explanation and click calculate.

Immediately you will have the results. You will also be informed that you need to pay PMI or Private Mortgage Insurance. This will add $55 a month for every $100,000 financed. This addition will bloat your monthly payments to $1,296.54.

By this time, you’ll know if you can afford to get the loan. If you have the 20% cash downpayment for the mortgage amount, you will be saving thousands of dollars on your mortgage. The mortgage calculator will then show a detailed summary of the month number, interest paid, principal paid, and the remaining balance from year one to the present year in detailed precision.

Do not hesitate to use the online mortgage calculator as this is free, so you can now stop the guesswork.