If you are looking to buy a home in Canada, you are bound to have questions about mortgages, and Canadian mortgage calculators can help you find the answers.
Types of Canadian Mortgage Calculators
When it comes down to it, you are likely looking to get into the most home you can for the least amount of money. In some cases, you may even be wondering if it is in your best interest to continue renting or to buy your own home. Websites like Interest.com offers a wide variety of calculators, each designed to answer a different question.
Mortgage Debt Consolidation
If you have more credit card debt than you can handle, you may be considering refinancing your home or a second mortgage as a means of reducing the total debt payments (mortgage plus credit cards) you make each month. A mortgage debt consolidation calculator can tell you how much it will reduce your monthly payments to consolidate and how much you can save in interest over the life of the debt.
Amortization calculators can utilize your principal amount, interest rate, and term of loan to give you a clear picture of how much of your payment goes towards paying off the balance due on your mortgage and how much is applied to the interest due on the loan. Many of these calculations will allow you to look at different variables, such as paying extra each month in order to pay off your loan early, and thereby saving on the amount of interest paid over the life of the loan.
Mortgage Loan Calculators
Whether you are a U.S. resident or Canadian, mortgage calculators that allow you to see the impact of making prepayments on your loan are invaluable. While you may have heard that making an extra payment a year or paying more than the balance due on your mortgage can save you thousands in interest over the life of your loan, it is another thing to see the numbers. These calculators also allow you to look at what type of prepayment plan will save you the most money. A mortgage loan calculator may or may not also give you a monthly breakdown of your amortization.
Buy Down Calculator
A buy down calculation will compare the interest with and without paying a buy down. It may also allow you to test spending your money as a down payment rather than a buy down to see which method will result in the lowest overall interest paid over the life of the loan.
A buy down is a financing option that allows a party in the sale/purchase of the property to pay the lender a sum in order to qualify the buyer for a lower interest rate during the first few years or over the life of the mortgage. Typically, if the seller or the builder pays down the sum, they will add it into the selling price of the property; however, often the interest savings make it worth the additional cost to the buyer.
A differential calculator allows you to do a side-by-side comparison of loans with different terms and interest rates to see what the long-term interest costs will be. When you are considering a 15-year loan at one interest rate to a 30-year loan at a different rate, this type of Canadian mortgage calculator can give you a quick look at which is a better long-term financing option.
Canadian Mortgage Calculators Conclusion
Free Mortgage Calculators can provide you with accurate and quick calculations that can save you thousands over the course of your mortgage. Before you sign your next mortgage, do your homework and make sure you are getting the best deal for you. Spend some time comparing rates and terms with a Canadian mortgage calculator.
These sites are a good place to start: