Wells
Fargo
Mortgage
Rates
FHA
Mortgage
Rates
State
Farm
Homeowners
Real
Estate
Notes
Home
Inspection
Tools
Current
Prime
Interest
Rate
Home Ownership Preparation :: Calculate a Mortgage
Calculate a Mortgage:
The Different Ways to Calculate and Estimate a Mortgage
Custom Search
You can calculate a mortgage payment easily with simple and fast online mortgage calculators – but how do these tools work and what can you use them for? How can they help you calculate either your current mortgage or a future mortgage?
To learn more about the various uses of mortgage calculators for first time homeowners, keep reading.
Calculating Future Mortgage Payments
You can calculate a mortgage quickly and easily as long as you know the total mortgage value (the purchase price minus your down payment), the preferred length of the mortgage and your approved interest rate.
With these three figures, most mortgage calculators will be able to give you an accurate picture of your monthly payment.
Remember though, if you’re using an ARM (adjustable rate mortgage), those payments can and will change depending on current interest rates.
Also, if you’re estimating your interest rate, always estimate higher than the rate that you’d expect to obtain.
Why? Because when calculating your future mortgage payments, you’d rather err on the side of caution than risk spreading yourself too thin financially.
Calculating How Much You Can Afford
Some mortgage calculators can actually help you figure out how big of a mortgage you can realistically afford.
By adding together your net income and subtracting your current bills - like car payments and other debts, along with future bills, like house insurance, private mortgage insurance and property taxes - these calculators estimate how much you can afford to pay each month.
From there, they take your down payment, preferred mortgage length and estimated interest rate into consideration to tell you how much house or mortgage you can actually afford.
These are simpler variations of the mortgage calculators used by brokers and lenders and can be very helpful when you start looking into real estate.
Calculating Additional Mortgage Payments
There are also mortgage repayment calculators and these can help you calculate a mortgage repayment schedule that includes extra or additional principal payments and tell you how these will affect the length of your mortgage and the final cost of your mortgage.
By using this type of calculator, you’ll be able to see how much of an impact an extra $50 per month or $1000 a year can make on your mortgage.
By cutting 4 or 5 years off your mortgage, you could end up saving thousands of dollars in interest payments. You’ll also free up that money for other investments.
Calculating Existing Payment Schedules
When you calculate a mortgage that you already have, you’re typically figuring out where you are on your payment schedule and how much is owed in terms of principal and interest.
These calculators will also provide you with a repayment schedule that splits every payment into the amount applied to both the interest and the principal.
See also:
All Articles for Home Ownership Preparation
Custom Search
Only $9.95!!
Learn great tips about how to safely obtain a home mortgage with
Your First Mortgage
Order Online
24 Hours a Day
7 Days a Week
365 Days a Year!
Copyright 2008
Home-Ownership-Preparation.com :: Calculate a Mortgage