A mortgage can be very confusing. Finding a proper mortgage may take you a lot of effort in comparing available loan products and calculating your bottom line. Online mortgage calculators can save you from having to attempt to calculate your monthly payments manually. These tools are easy to use and a great time saver which can assist borrowers in their planning and help them to select a suitable mortgage or refinance.
An online mortgage payment calculator can be used to calculate fixed rate payment or adjustable rate payment of a particular mortgage. In addition, it can be used to calculate your affordability of a loan and compare two loans side by side. Using a mortgage calculator, you can also perform point calculation and a rent or buy calculation.
Loan payment calculator
The most known mortgage calculator is a loan payment calculator. Based upon the type of loan, whether an interest only or a fixed rate, a loan payment calculator can identify the amount of your monthly payment for a particular loan amount, interest rate, and loan term. If you know the estimated annual insurance and tax for your prospective home, you can also plug these figures into the calculator to include them as part of your monthly mortgage payment calculation.
ARM Payment Calculator
An ARM payment calculator can be most suitably used to identify your initial payment, monthly payment after rate adjustment, and maximum possible monthly payment. An ARM calculator has to take numerous things into account such as the initial fixed-rate period, the index plus margin, as well as the lifetime cap in order to calculate the maximum possible monthly payment.
Home affordability Calculator
A home affordability calculator can identify your maximum mortgage loan amount that you will be allowed to borrow based upon your gross monthly income. It will also calculate your monthly mortgage payment based upon the interest rate and the duration of the loan.
Loan comparison Calculator
A loan comparison calculator can help you compare two loans side-by-side. The main feature of this calculator is that it will give you a nominal breakdown of the differences, so that you may decide which loan is better for you. A loan comparison calculator will compare two mortgages/loans based on their characteristics; interest rate, loan term, discount point(s), loan origination fee(s), closing costs, index (if applicable), caps (if applicable) etc. This calculator will be able to calculate your monthly payment, total upfront fees, and total cost for a certain number of years for both loans/mortgages being compared.
Paying points can help you save additional money in some cases. To determine whether paying points makes sense, you should ask yourself how long you are planning to keep the mortgage for. With this calculator, you will be able to find out how much you can save as well as calculate the time period needed to keep the same mortgage in order to make sense of paying points.