When you enter the real estate market to buy a home, it is a good idea to know in advance how much purchasing power you have. Rather than be turned down for a home that is out of your price range, do your homework first. Go on line and find a mortgage rate calculator to find out exactly what your payments will be and how much money you are paying back with interest.
The mortgage rate calculator is a wonderful tool; you can not only calculate your loan, but you can also calculate your start and end date. You can calculate the exact date that you will pay off your loan. The mortgage rate calculator is found on many lending websites. You plug in all your criteria, such as your monthly income, the price of the home or property you want to buy, and any other debt that you owe.
You can calculate the payoff date of your loan with the mortgage rate calculator, but many lending institutions allow you to pay your mortgage note off early. You can pay your note off by making extra payments into the principal of the loan, which brings down not only the amount owed, but also brings down the interest rate in many cases.
With the mortgage rate calculator you can determine the kind of loan you want. If you want a 15 year mortgage at 8.5 percent interest, you can plug those numbers into the mortgage rate calculator and determine the monthly payments and the date you will pay off the loan. The same goes for if you decide you want to opt for a mortgage with a longer term. If the interest rate remains the same over a 30 year note, you may be making lower payments each month, but you have acquired more debt than if you opted for the shorter note with higher payments. Paying on a house for 30 years may not be what you want to do, so opting for the shorter mortgage term will save you many thousands of dollars.
The mortgage rate calculator allows you to calculate your loan with fixed interest rate or with adjustable interest rates, which will have an effect on what your monthly payments will be each month. While with a fixed interest rate, your mortgage payment will remain the same, while with an adjustable interest rate the monthly payment may change as the interest rate changes. The lending company will make adjustments from time to time when the interest rate goes up or down. The adjustable mortgage rate is more commonly known as ARM (adjustable rate mortgage).
Buying a home can be one of the most exciting times in your life. Being proactive in determining the type of loan you want with the terms you want will help you negotiate your loan. Using the mortgage rate calculator can be an empowering experience, because you know in advance the payments you can afford and the terms you can live with.
Paying off your mortgage early will save you tons of money on interest. For instance if you are paying a 30 year mortgage and you have already paid into the note for 5 of those 30 years, by adding $100 onto your scheduled payment, the mortgage payoff calculator will show you your savings in the thousands of dollars. It will also tell you how many years you shortened your repayment by making the extra payments. The mortgage payoff calculator software can be found on any lending company’s website. You can also put the words mortgage payoff calculator in your search engine and find pages of them.
Most mortgage payoff calculator websites have a picture graph to reflect the data you enter into it. On the left side you may see the amount of interest in the thousands of dollars; along the bottom you can see the number of years to pay the mortgage. The legend along the side in a box will have color coded boxes to represent the interest paid, the balance of interest reflected with prepayment, and the scheduled principal balance of loan. If you were paying $699 a month for your mortgage and you increased your payment to $799 you would shave off almost 7 years off your total mortgage. You would see by the mortgage payoff calculator that you will save over $37,000 in interest.
Another example: You are in your first year of a 30 year mortgage and you decide you want to pay it off in 15 years instead. If your payments were $600 a month and you want to add $200 to that amount, the mortgage payoff calculator will show you that you will be saving about $70,000 in interest, depending on the interest rate, by paying off your note in 15 years.
With a click of your mouse, the mortgage payoff calculator will show you the amortization schedule, indicating the number of years and months you will have shortened your mortgage term until it is paid off. Most lending companies allow you to prepay into loan, and in so doing you decrease your principal which also decreases your interest. By decreasing your interest payments you are also decreasing the bank or lending company’s profits from lending you the money. Check with your lending company to verify their qualifications for paying your mortgage off early. Some lending companies may charge you a penalty if you pay your note off too early, so be sure to check with your lending company before paying your mortgage loan off early.
If you want to pay your home off early, but you don’t want to go the route listed above, you can opt to pay half payments every two weeks. There are 26 bi-weekly periods in a year, which means that you will have made 13 payments in 12 months. That extra month a year will compute to a great savings also. To see just how much you would save by making half payments every two weeks, let the mortgage payoff calculator tell you how early your loan will be paid in full and how much interest you saved by paying your loan off early.
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