September 25, 2018

Mortgage Calculator – Calculate Your Monthly Payments

If you are contemplating buying a home, be it for the first time or to accommodate your growing family and wealth, you can have a better understanding of the financial impact by using an online mortgage calculator. By doing so you will have a much clearer knowledge of the amount of money you will need to find each month, this in turn can help you to be certain that the plan you are considering is feasible and will not leave you in financial turmoil.

It is essential to only sign up for a home loan once you are absolutely certain you will be able to make each month’s payment on time, as if you do not you will end up in serious problems and may even lose all the money you invest in the property. If you are not so familiar with how to use a mortgage calculator, take a moment to consider the following tips and advice.

First of all you will need to locate a website that offers this application. This is in fact the easy part as there are literally hundred of portals you can visit that feature mortgage calculators. Apart from the web pages of banks and lenders there are also third party sites through which you can input the essential data.

At the outset you’ll need to be clear on the exact balance that needs to be paid off. For example if you are going to buy a $500,000 home and can put down a payment of $50,000 at the outset the balance that is left would be $450,000. It is this figure that you would need to enter into the calculator field entitled principal or mortgage.

The next step would involve selecting the number of years the loan will be held for. Typically this may be thirty years though today there are both shorter and longer term mortgage loans available. The advantage of a calculator is that you can try out various options and then select the one that best matches your income.

You will also need to enter the interest rate. Take a look at various mortgage brokers and bank’s websites as here you can find information relating to the current rates of interest that would be given to mortgage loan applicants. A loan calculator would only provide accurate information if you were to opt for a fixed rate of interest, they cannot provide worthwhile data if you are planning to choose an adjustable or variable interest rate.

Before hitting the calculate button check that all the information you have entered is accurate. Once you have submitted the data, the calculator will then present you with an estimate of how much the monthly mortgage repayments will be.

Through the use of a loan calculator you will have a much clearer picture when it comes to choosing a mortgage that is affordable. Also you’ll be made aware of the differences in outlay that can be brought about by a few changes in the type of plan you sign up for.

Comments

  1. Karen Wells says:

    Great site. A lot of useful information here. I’m sending it to some friends!

  2. Abigail says:

    My husband and I are buying a new home, and trying to qualify for a new mortgage – so your site has really helped us in the process.

    -Abby

  3. Amber Dietz says:

    A lot of scientific calculators also have a mortgage calculator on them.

  4. Curious About Finance says:

    Make sure you calculate your own mortgage payments – before you sign on the dotted line for the mortgage – because they can make mistakes, too.

  5. Charity G. says:

    You need to act now, because rates are starting to go back up!

    Charity

  6. Samantha says:

    It is pretty simple math, really. You don’t even need a mortgage calculator to do it – you can even use an Excel spreadsheet – they’ve got a built-in function to calculate your mortgage payment. -Sam

  7. Rawlins says:

    What formula do you use in Excel to calculate mortgage payments?

  8. Eugene, OR says:

    You can use the NPV formula, but I forgot exactly how to do it….
    Eugene, OR

  9. Tracy2011 says:

    Check out the PMT and PPMT functions, as well as NPV and PV.

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