Mortgage Calculator and Its Usages

When purchasing a new home most buyers choose to finance a portion of the purchase price through the use of mortgage. And since, various mortgage offers are floating in the market, it becomes tough for you to choose and evaluated as which suits the best to you. Hence going with mortgage calculator is the best option for all mortgage buyers. Mortgage calculator is a software tool that allows you to evaluate and compare various mortgages offers. It calculates essential values and amortization schedules for a number of different mortgages. Its capability can be found on most financial calculators such as the HP-12C, in most desktop spreadsheet programs such as Microsoft Excel and on the Web.

With Mortgage calculator comparing multiple loan offers becomes easy and affordable. Multiple loan offers are clearly displayed and compared in a single window. You can easily add copy, edit and remove loan offers. Also, automatic calculation of costs is possible with this software tool. Hence, monthly payments, principal and remaining interest on any given date, total amount of interest, total sum to pay are all calculated automatically.

With this it becomes easy to print amortization schedules, as mortgage Calculator generates detailed amortization schedules. The amortization schedules allow you to evaluate and compare how the principal and interest would be paid off throughout the entire term of each mortgage. Besides this, an easy-to use glossary helps you clarify obscure mortgage terms.

Therefore it proves that a mortgage calculator is an automated tool that enables the user to quickly determine the financial implications of changes in one or more variables in a mortgage financing arrangement. The major variables include loan principal balance, periodic interest rate compound interest, number of payments per year, total number of payments and the regular payment amount.

Mortgage calculators are used to help a current or potential real estate owner determine how much they can afford to borrow to purchase a piece of real estate. In addition, mortgage calculators can also be used to compare the costs or real interest rates between several different loans, determine the impact on the length of the mortgage loan of making added principal payments or bi-weekly instead of monthly payments.

One can also use an online mortgage calculator to see how much property you can afford. A lender will compare your total monthly income and your total monthly debt load. A mortgage calculator can help you add up all your income sources and compare this to all your monthly debt payments. It can also factor in a potential mortgage payment and other associated housing costs such as property taxes, homeownership dues, etc. You can test different loan sizes and interest rates with this unique software tool. So, if you are planning to take a mortgage, always trust on your mortgage calculator.

By: Vikas Lov