Online Mortgage Calculators

Convenience of Online Mortgage Calculators

A visit with the loan officer at the local mortgage company leaves many people a little mystified. All those numbers tend to get jumbled when you are mostly relying on your memory. Wouldn't it make more sense to do a little homework of your own before your appointment?

Online mortgage calculators make it possible for you to figure out a lot about your own financial picture, whether you are looking for a first mortgage, or considering borrowing against your home equity. They are convenient because you can use them at your leisure, even inputting different scenarios to judge potential outcomes.

Types of Online Mortgage Calculators

There are a variety of online mortgage calculators, depending on which type of information you are researching. Each of these online calculators is designed to handle a specific type of mortgage service. Just enter the info asked for in the blanks (as accurately as possible), hit calculate and your answer is ready immediately.

Mortgage Payment Calculator

Thinking about putting in a bid on a new home, but you're not sure what the payments will be like? A mortgage payment calculator can help. Typical information asked for includes:

• The asking price of the house.
• The down payment amount.
• The current interest rate (just ask your bank or use the calculator’s default value).
• The number of years you want to take to repay your loan, usually 15, 20, or 30 years.

Hit calculate and the answer is at your fingertips. If you used a fifteen year amortization rate the first time, you can go back and compare what your payments will be like with a thirty year mortgage, or if you use a different down payment.

Home Equity Calculator

Quickly compute the amount of equity available to you through your home mortgage. Here's how it works:

• Enter your home's current value. (This may now be higher or lower than the price you originally agreed to pay.)
• Enter the total amount you still owe on your first mortgage.
• Enter the balance, if any, of your second mortgage.
• Enter the balance of any home improvement loan(s).
• Enter the balance of any home equity line of credit you may have.

Hit calculate. Your online mortgage calculator will give you three amounts of home equity available to you, one at 80%, 100% and 125%. Keep in mind, whether you qualify at all and for what amount, is also determined by the current value of your home, your amount of income, and your overall credit history.

Additional Types

Other online mortgage calculators include:

• Mortgage Qualification Calculators: Let you investigate how much income you should have to afford specific price ranges.
• Rent vs. Buy Calculator: Compares the value of renting to purchasing a home over a specified period of time.
• Affordable Payment Calculator: Compares your income-to-debt ratio to let you know how high a mortgage you can afford.

Summary

Online mortgage calculators help you get perspective on your financial situation so you can determine your best course of action and give you the flexibility to experiment and determine what you should change. Perhaps the numbers show this is an ideal time to make that investment; if it isn't, you now have a better idea of what you need to achieve any financing you seek.

External Links

• Calculator.com
• Fannie Mae