An astonishing 80% of home buyers now conduct at least part of their research online. To help future home buyers, mortgage officers provide free mortgage loan calculators online. All of these calculators share basic core financial functions with some of them providing advanced features. But they all can provide valuable insight as you navigate the home mortgage process. Let’s take a look at some of the different types of free mortgage loan calculators available online, and see how we can put them to best use.
All free mortgage loan calculators are able to calculate monthly mortgage payments. All you have to do is enter your total mortgage amount and the length of the mortgage, along with the interest rate and the starting date of the mortgage. The calculator will take this information and show you the amount of your monthly mortgage payments.
Some free mortgage loan calculators include an additional feature that will let you calculate the beneficial impact of making extra payments on your mortgage. By entering additional monthly or annual amounts, or adding a one-time payment, you can predict how much earlier your loan pay-off date could occur.
Free mortgage loan calculators can also help you figure out your amortization schedule. Whether or not your amortization schedule is based on prepayments, free mortgage loan calculators will help you compute the amount of a monthly payment.
Free mortgage loan calculators determine this by basing their calculations on your data: the principal amount borrowed, loan term, and the annual interest rate. Once the free mortgage loan calculator computes your monthly payment based on this data, you can then create the amortization schedule report.
Free mortgage loan calculators can also help you with your bi-weekly mortgage calculations. Making bi-weekly mortgage payments is a relatively painless way to pay additional amounts on your mortgage, saving you interest and shortening the mortgage term. Several free mortgage loan calculators can calculate what your bi-weekly payments will be and show you the amount of interest you will save.
To calculate your bi-weekly payments, total interest, and average interest each bi-weekly period, you will need to input into the free mortgage loan calculator the principal loan balance, the annual interest rate and the amortization. This should be enough for the tool to compute your savings on interest and monthly payments.
Here’s where the free mortgage loan calculators start to get interesting. They help you answer the “what if” questions. You can compare different scenarios to see which course of action leads to the most desirable outcome. For example, you can figure out how the size of your down payment can affect your monthly mortgage payments.
Free mortgage loan calculators can also help you determine missing variables of a loan. For instance, you can find out how much money you would have to earn in order to afford one.
If you have any questions about what the calculators are asking for or what the answers mean, contact a reputable mortgage loan officer who will be happy to take the time to review the numbers.