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Posted on June 7, 2008 by Andron Fisher | Posted under Software
Calculating Your Early Repayment Options with a Mortgage Calculator
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When you first start paying on your mortgage, the majority of your payment will be going toward interest. It is not until the end of your loan that you actually start really paying down the principle balance. A mortgage calculator (http://www.mlcalc.com/) will help you see exactly where your money will be going before you take out a loan. If you already have a mortgage, a mortgage calculator will show you how your payments will be distributed throughout repayment. You can also use a mortgage calculator to see how making extra payments toward principle will affect your loan. For example: If you have an 8%, 30 year mortgage for $100,000, you will pay back $264,153. A huge chunk of that amount, $164,153, will go toward interest. Using a mortgage calculator, you can see how making an extra $50 payment each month toward principle will save you in the long run. By making an extra payment each month of $50, you will save $39,908 in interest. You will also pay off your mortgage 6.08 years earlier. Why should a mortgage calculator be of interest to you? You can use the calculator to "try out" different repayment strategies. The mortgage calculator will show you how each strategy will pay off in the long run. A mortgage calculator can also be very helpful when it comes time to refinance your loan. It will show you exactly how much money you will save by refinancing at a lower rate. You can also use a mortgage calculator to budget for a home. Many times, the loan that you qualify for is not the loan that you can afford. After you have completed a realistic budget, you can use a mortgage calculator (http://www.mlcalc.com/) to find the loan that you can afford. How much money can you reasonably borrow and pay back without having to make sacrifices? A mortgage calculator can help you figure it out. When you have the right tools, you can make great decisions. Never buy a home or take out a mortgage without knowing all of the facts. A mortgage calculator will help you learn all of the details of your potential or existing loan. About The Author: Andron Fisher is a freelance writer, specialising in finance subjects such as loans, banking, mortgage, etc. He recommends use of a mortgage calculator for calculations at http://www.mlcalc.com/ |
Tags: MORTGAGE LOAN, MORTGAGE CALCULATOR, LOAN CALCULATOR, MORTGAGE, LOAN, MORTGAGE LOAN CALCULATOR
