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Make smarter decisions with home loan calculators

Mortgage payment calculations are based on complex mathematical formulas, and fortunately there are many options for finding calculators to make this mathematical process easy and painless.

By using a mortgage calculator, it becomes very easy to know the monthly payments you need to make, and very easy to see what happens to your payments when you change key values like the amount of the loan, the number of payments, and the interest rate.

Types of mortgage calculators
There are two different types of mortgage calculators, online calculators and traditional physical calculators that have built-in functions for computing principal and interest payments. The online mortgage calculators are mostly used by the borrowers, and real estate and mortgage professionals usually prefer using the physical ones.

You’ll need nothing more than an Internet connection to be able to access the online mortgage calculators. They are available free of cost and are very easy to operate. You’ll just need to put in the necessary information, usually the amount of the loan, the number of payments, and the interest rate.

The most common types of mortgage calculators include the following:

  • Monthly payment calculator – It helps calculate your monthly payments easily and assists you when you’re thinking of taking out loans.
  • Interest only calculator – You’ll know the amount of interest you need to pay every month. The total interest for the term can also be calculated.
  • Amortization schedule calculator – It helps you cut down your loan term by doing calculations on the principal amount and interest rate of your loan.
  • Bi-weekly payment calculator – This calculator uses an accelerated bi-weekly mortgage payment method and helps you save money. Get to know the difference between monthly and bi-weekly payments with the help of this mortgage calculator.
  • Adjustable rate calculator – Say goodbye to uncertainty with this calculator. Know about the changing interest rates and how it is going to affect your mortgage payments.

The benefits of mortgage calculators
Mortgage calculators are beneficial in several ways when you want to refinance mortgage or calculate your debt payments:

  • They let you know about your affordability.
  • They will tell you the time it will take to pay off your loan completely.
  • They will help you learn about other better payment methods.
  • They will let you choose the most cost-effective payment method.
  • They will help you get the most favorable rates on mortgage refinances.

Using a mortgage calculator prior to making any mortgage related decision is important. The calculations give you an idea about the present market conditions and how you can benefit yourself the most.

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