Purchase of a house is one of the most important and expensive deeds in our lives. Hardly surprising that before making such step many preparations should be done and one of them is calculating of exact price of the purchase and assuring yourself that you can afford it. Mortgage calculator can come in handy as it helps to figure out all necessary information concerning the purchase and payments. Below are listed best mortgage tips and tricks.
Mortgage payment calculator
Forget about math equations and set your pen and paper aside while getting approved for a mortgage. Now there is an online mortgage calculator that will do all calculations for you. It will predict your mortgage payment and amortization schedule as well as take into account all additional fees you are going to make. It will need only few numbers and the results will be precious. Here is a perfect example of simple and effective mortgage calculator
Despite the fact that many people use this calculator just for estimating the sum of a new mortgage, it can be used for many other purposes we are going to talk about.
Learn how to pay off the mortgage
Any person destined to give away money for 30 years in row is interested in the reduction of the term and sum of payment. Moreover, in general, mortgage holder will definitely pay much more than he had obliged. The “Extra payments” functionality of Bankrate’s mortgage calculator enables user to find out what sums will be appropriate for shortening the term of payment as you add them to the monthly payments. Enter supposed sum into one of the payment categories (one-time, yearly or monthly) or into all three of them and see the results at “Show/Recalculate Amortization Table”. There you will see new payoff date and the sum of money you will pay.
Estimate the benefits of the mortgage rate
On the one hand, ARM looks really lucrative and promising and many mortgage holders take an advantage of it. On the other hand, often it turns out that the lower initial interest rate is not as helpful as it seems. Calculator is the best tool to figure out how much you will safe with ARM. To do so, enter the rate in the field and leave the 30 years term. After you get the results you can compare them with the results of the rates with 30-year fixed mortgage. This is the best way to see the real value and impact of ARM – whether it is worth the risks or not.
Get information how to get rid of private mortgage insurance
The mortgage calculator determines the date of getting 20% equity in home. This number is the jumping-off point when it is time to request waving of private mortgage insurance requirement.
To do that it is necessary to enter in the original amount of the mortgage and the date you are going to finish it and find the Show/Recalculate Amortization Table button. Multiply the original amount by 0.8 and find the closest results in the far-right column of the amortization table. That is the date of reaching 20% equity. This is it for mortgage tips and tricks, please leave your comments/questions below and we will gladly answer them.