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Advantages Of A Home Mortgage Calculator
Once you know the benefits of a home mortgage calculator there will be less to worry about mortgages. This is a tool that has proved to be very useful especially for those who are looking for favorable terms for a mortgage. It makes the process much simpler and less time consuming.
A mortgage calculator will help you to determine the minimum as well as the maximum amounts that you are able to allocate as monthly installments towards the repayment of a loan. This places you a step ahead as you are then able to work with the figures and look for a contract that best suites you.
In the real sense, you will also learn a few tricks about minimizing the overall payment sum. A perfect example is that in order to reduce overall interest, a calculator demonstrates to you that it is better to choose monthly installments that are higher than your minimum amount.
In general, you get a better perspective of how much to pay according to your financial situation. The advantage of this is that you will be in a better position to make the right choice. Eventually, you will be able to make a final decision of exactly what to do.
The use of one will also shed light on whether it is financially viable to pay off a loan faster with extra money or investing it in other ventures. After weighing the two options, it would be wise to take up one where the overall savings are higher.
An important note is that the choice of a home mortgage calculator is also very vital. You have to choose one that has all features such as one that factors in taxation as well as insurance payments. Once you pick the right one, you can be confident that you are on the right track towards getting a deal that suites your specific needs.
Article Posted by Expert Author: 3 on 01/03/2014
Article Posted In: Home Mortgage Calculator
Is Buying a Home Worth It? Consider All Your Costs With a Home Mortgage Calculator
Many people want to be homeowners but it's not always worth it for everyone. The first step is to find out how much you'd pay on a monthly basis. Use a home mortgage calculator to find out how much of a home you can afford while staying within the price range you pay while you rent. Then check out a few houses in that price range. Are you getting more for your money or less? Can you find homes in the areas you'd like to live in? This step can make it clear for many that now isn't the time to buy a home.
Next you'll consider exactly how much it would cost you to own a home by taking into consideration things not covered by a home mortgage calculator. Remember that it's not just a mortgage payment. It's also other expenses like upkeep, maintenance, trash removal, etc. In most areas your real estate taxes will be rolled into your mortgage, and other insurances may be as well. Consider that any time something goes wrong – whether it's plumbing or damage to your roof – you'll be the one that's responsible for taking care of it. This doesn't just require a financial investment – it also requires a time investment. On the other hand, the benefits of owning a home are huge: You'll finally have a place that's truly your own.
Article Posted by Expert Author: 3 on 11/22/2013
Article Posted In: Home Mortgage Calculator
Discover Interesting Reasons to Pay Off Your Mortgage Before You Retire
Of course in an ideal world we'd all retire without an ounce of debt, but many people simply don't think this is possible in their situations. However, there are some interesting reasons to do your best to pay off your mortgage before you retire. First of all, those who plan to rely on Social Security must be aware that taxing can be complicated. It's true that if the majority of the money you live off of comes from Social Security than that money is not likely to be taxable. However, if you are drawing from 401ks or IRAs then the taxing can be more complicated. Interest paid on mortgages can make it even more complicated.
It's also important to consider that for the vast majority of families, housing is by far the biggest monthly expense. As a result, it simply makes sense that if you are able to significantly reduce the cost of maintaining a home post-retirement, then you'll significantly increase your peace of mind. If the mortgage can't be paid off completely then there's always the option of downgrading and moving into a home that's smaller but comes with lower costs. Utilizing a home mortgage calculator is a great way to help you plan your budget post-retirement.
Article Posted by Expert Author: 1 on 09/27/2013
Article Posted In: Home Mortgage Calculator
The Benefits of a Partially Amortized Loan
Are you aware there are multiple types of mortgages you can acquire, each with its own specific terms? It’s true, though most people only need to make one big decision when choosing the structure of their loan- whether they want a partially or fully amortized loan.
What is a Fully Amortized Loan?
The fully amortized loan is one whose payments are made in installments for the entire term of the loan. What this means is that a loan that is 60 months in length will be paid with 60 monthly payments that are equal, with each payment going partially to interest and partially to the loan's principle. In a fully-amortized loan, most of the initial payments go toward interest primarily. However, as time passes, more of each monthly payment is directed toward the loan's principle.
The benefits of the fully amortized loan are that it can help homeowners who don't have a lot of money to make a significant down payment on their home. As well, this loan type can help homeowners to pay down their principals more quickly. A fully amortized loan also offers financial stability, as the homeowner pays the same amount each month until the loan's end. And when loan's end is reached, the buyer doesn't owe any more money on their home.
The fully amortized loan does have some risks. First, if a homeowner ends up selling their home within two or three years of getting the loan, the higher payments and interest rates may be wasted money. If the need is there for flexibility with cash, the fully amortized option may not be right for you.
What is a Partially Amortized Loan?
A fully amortized loan is the sort of mortgage you’re accustomed to hearing about, which is a loan where you pay it off with nothing more than a monthly series of roughly equivalent payments that stretch out of the life of your loan. However, the partially amortized loan will include what is called a 'balloon payment' either at the beginning or at the end of the loan. This balloon payment is a single large lump sum you are responsible for at either the beginning or the end of your terms. The balloon payment must be made in order to consider the loan paid, and this usually occurs at loan's end. Which structure you choose depends a lot on how well the benefits of each match your needs.
The good news about the partially amortized loan is that it will typically mean a lower interest rate, as well as lower monthly payments for the buyer. As well, this option is great for the buyer who is able to make a significant down payment on the home they want to buy. Partial amortization can also be an option when the buyer plans to sell their home prior to the loan 'ballooning'. It can also benefit the buyer who may be low on income, but who is sure their financial situation will improve at the end of the loan when the balloon payment will be due.
There are pitfalls to avoid with partial amortization. Although the low initial payments may be very tempting, the buyer should do their best to ensure that they will be able to afford the balloon payment required with this option. Otherwise, an unfortunate situation could be the result, such as foreclosure.
Make sure you refer to our home mortgage calculator to understand the real costs involved in a variety of loans so that you can select the best scenario for your particular situation. You can also check out the industry jargon so that you speak the same language as the representatives from your lending institution.
Calculating the Benefits of an Early Payoff
What are the benefits of using a mortgage calculating tool? To answer this question we have to answer and much more basic, ground-level question… what are the benefits of paying off your mortgage early?
If you simply pay the minimum on your home loan every month than you’re going to pay a LOT of extra money in interest rates by the time you pay off your loan. In other words- the longer it takes you to pay off your loan the more interest you will pay, and the more money (as a whole) you will pay to clear your debt. By contrast- the faster you pay off your mortgage the less interest rate you will pay and the less you will ultimately spend to own your property.
Some of the benefits related to the early payoff of your mortgage is the fact that any payments you make toward your principle with additional monthly payments will mean that the length of your loan as a whole will be reduced. For example, a thirty-year fixed-rate mortgage where one additional monthly payment per year is made can reduce the length the loan by seven years.
Another benefit of paying your mortgage off early is the fact that you will realize a reduction in interest. This is because additional payments reduce total paid interest on your debt over the loan's life. The monthly interest you pay is based upon your loan's principle balance. Just as with the reduction in the length of your loan, one extra mortgage payment yearly can result in much money being saved on interest.
Higher Amount Of Equity
More equity is another advantage of early mortgage payoff. When the monthly payments are increased, the goal of owning a home without debt can be reached that much more quickly. And the reduction of your mortgage's principle means increased equity. Increased equity can also result in another benefit, which is more money for your home should you sell it before you have paid your mortgage in full. More equity in a home can also mean a larger line of credit if extra cash is needed.
Strategies For Early Mortgage Payoff
Homeowners looking to pay their mortgages off early have a few options. First, they can add the principal to the amount they currently pay per month. Of course, this strategy assumes that the mortgage being paid has no prepayment penalties. The principal can be added as a one-time lump sum payment, or it can be added month-by-month by sending any bonuses right to your lender. This strategy will ensure that none of the payments need to be seen or missed.
Another strategy is to make bi-weekly payments on your mortgage. Making half a payment every two weeks will add up to 13 full payments per year instead of 12. This can amount to a significant reduction in the life of your mortgage loan. However, it's important to check with your lender to see whether they will charge a fee for switching to bi-weekly payments.
Refinancing to a shorter term mortgage may also be a way to pay your mortgage off early. By reducing a thirty year mortgage to fifteen years, the interest rate will be lower. While doing this will increase monthly payments, the monthly flow of cash will be offset by the lower rates.
But is a mortgage calculator early payoff tool right for everyone? In a word, yes. Because this calculator enables anyone to budget all of the variables that go into a mortage, it is useful whether you wish to refinance or purchase a new home.
Anyone who wants to spend as little as possible in the long run on their home loan will benefit from using a home mortgage calculator tool. You can find one at http://www.home-mortgage-calculator.com/ along with useful advice and articles to help you negotiate the process of getting a loan or refinancing an existing one.
Understanding Interest Rates
Even the most effective tool out there won’t do much good if you don’t know how to use it. For example, when properly used, a mortgage interest rate calculator can give you a lot of financial insight. But most homeowners aren’t entirely sure how to use one of these calculators, and this can prevent them from finding the best possible terms for their property’s loan.
Thankfully using an interest calculator really isn’t that difficult. You just need to know how it works. But understanding how an interest rate calculator works first requires an understanding of how interest itself works.
Why Is Interest So Confusing?
It may be the many numbers involved with the calculation of interest rates that makes them so confusing for some homeowners. But the name of the game with interest rates is to get the lowest rate you can. Adding to the confusion is the fact that getting the lowest interest rate doesn't necessarily mean that you will get the most affordable loan.
Interest is actually a pretty simple concept, but at first glance it can seem confusing. With so many numbers and decimal points, it's normal for a layman to not be able to make heads or tails of what they're really being offered. But when you break it down, interest is actually pretty easy to understand.
Back to Basics: What is Interest?
Interest is basically the difference between how much you owe on your home and how much you are paying for your loan each month.
The interest rate you receive on your loan is primarily determined by your credit rating. It’s pretty much impossible to increase your credit rating overnight, which means if you’re about to sign up for a home loan, or if you’re about to refinance your home loan, you’re pretty much stuck with the interest rate the bank’s going to give you.
Many homeowners wonder how they can pay less over the life of their loan if they can't reduce the interest rate itself. One solution is to pay more than your loan’s minimum every month. This will greatly reduce the amount of time it takes to pay off your loan. The less time you take to pay off your loan the less interest you will pay over the life of your loan and the less overall money you will need to spend to clear the balance owed on your mortgage.
Buying points may be an option. This is basically a fee that allows homeowners to lower their rates by paying some money up front. But it may be up to ten years before any savings on interest are realized.
A mortgage interest rate calculator is a great tool can help you figure out exactly how much more you should pay every month and what the exact impact of each monthly payment will be over the life of your loan.
Using The Mortgage Calculator
There are different types of mortgage calculators available; you simply have to know which type of mortgage you have. For fixed-rate loans, you need only know three numbers: how long your loan's term is, how much money you need to borrow and your interest rate. You simply plug in these numbers, press the 'calculate' button and you will instantly know how much you will be paying per month, as well as how long it will take you to pay off your loan.
An adjustable-rate calculating tool works a little differently. The same three numbers will be needed for this type as would be needed for the fixed-rate calculator. But this calculator will also require the amount of time prior to your loan adjustment, as well as the adjustment intervals. As well, you will need a number for your loan's cap, or the highest amount your interest rate will reach.
Can the Short Sale Process Save Me Money?
Pretty much everyone scouring the housing market wants to get the best deal on the best property possible. There are multiple strategies you can employ to end up on the right side of your home buying initiative but few of them are as promising as pursuing homes going through the short sale process.
What is a Short Sale?
A short sale occurs when the lender representing a home seller will accept a lower price in order for an existing mortgage to be released. But in reality, this isn’t always a discount. In reality the tag you can get on a property up for short sale is better thought of as a price adjustment. Lenders often short sale a property when they feel the property is valued incorrectly and they want to get out of the initial mortgage they attached to the property as that mortgage no longer applies to the property’s current worth.
As well, any buyer considering a short sale should be aware that, just because the lender wants out of the mortgage as quickly as possible, this doesn't necessarily mean that the buyer's offer will be accepted by the lender, even if it is accepted by the seller of the home.
The good news may be that a short sale doesn't always occur as a result of the seller being in default due to stoppage of mortgage payments. A lender can consider a short sale before the seller ever reaches default status. A seller can be current with their payments, but if the home's value has fallen and the seller is encumbered, a discounted price can bring a home's price more in line with market value.
Understanding how to cash in on the short sale process is a great way to save some money on your next home. In this particular economy, it is truly a buyers market out there, and there are spectacular deals to be had if you are willing to patiently move through a short sale scenario.
Can A Short Sale Get You A Good Deal?
Although going for a short sale has many advantages, it can also have its complications. A short sale home that is in pre-foreclosure, for example, can involve lots of red tape that can take 30 days or more to close. In fact, depending on the area where the short sale home is located, a buyer may end up waiting up to six months for closure.
One way to ensure you get the best deal on a short sale is to conduct thorough research. This can be done by checking public records of the home you are looking at. Your agent can find important information about the home your interested in, including who holds the title to the home, whether or not the foreclosure process has been started, and how much the current homeowner owes on their loan. All of this information is crucial to anyone considering the purchase of a short sale home, because it will provide the buyer with a guideline for how much of an offer to make.
Getting The Lender To Agree To A Short Sale
Most lenders won't be in agreement for a short sale unless the seller of the home is without equity, and/or they find themselves unable to pay the difference between the sale price and the amount of the existing loan. The seller of the home will need to provide some sort of documentation, such as a letter of hardship to their lender to prove that they are unable to continue meeting the financial obligations associated with the home.
The IOU Calculator provides consumers with great tips and ideas on how to capitalize on low interest rates and save money on their home loans. We also take the mystery out of the jargon and help explain various types of loan configurations.
What Expenses End Up in Closing Costs?
It’s an unfortunate fact that the price of your mortgage is more than just the total of your principle calculated with your interest rate. The monthly cost of your mortgage also incorporates property taxes, various forms of insurance and a bundle of other unexpected costs, including the big upfront lump sum of your closing costs.
Usually, closing costs are added to the mortgage amount. They can also be an additional down payment. For the seller, closing costs are subtracted from the check received as settlement. Who pays which closing costs is negotiable. And sometimes, a homeowner who is looking to sell their home as soon as possible will offer to pay all closing costs for the person buying their home. But more commonly, it's the buyer who pays the bulk of closing costs.
What Counts as a Closing Cost?
Anything you need to pay before you can receive your mortgage, and as such your property, falls into this category. Which means you can expect to pay a significant amount of money upfront to get your loan, paying for everything from attorney costs to governmental fees associated with signing the deed over to your name.
There are many items included in closing costs. The cost of the credit report, which is usually around $50 can be paid by the buyer when they first apply for a home loan. The recording fee is what is paid for the transfer of ownership to be recorded. Another common cost rolled into closing costs is the loan origination fee. This is the cost to process the buyer's home loan, and typically amounts to one or two percent of the loan.
Escrow is paid to the buyer's escrow account. The account will collect partial property tax and insurance payments for payment by the due date. As well, the appraisal can be included in closing costs. This occurs when the estimated value of the home is determined. However, the appraisal may not always be able to be rolled into closing costs; sometimes it is due upon submission of the loan application.
Insurance payments can be rolled into closing costs as well. The buyer can pay for a year's worth of insurance. But property taxes are probably the biggest expenses a home buyer will have to pay at the time of closing. The amount paid in property taxes will depend on the value of the home being purchased. Other factors that will influence the amount of property tax you pay include the tax rate of the town your home is located in.
Some lenders will require you to include an estimate per month. This estimate will be your mortgage payments and will equal 1/12th of the annual property tax and homeowner's insurance amount. Many homeowners choose to go this route instead of paying out one lump sum at tax due date time.
Practically speaking this means you need to have a good idea of what you’re going to need to pay for closing costs before you begin looking for loans, as a good idea of how much these expenses will run you will help you make sure you only apply for mortgages you can actually afford.
The best way to ensuring you are paying as much as you should at closing time is to be informed. Going into the closing process means being prepared. And the best way to do that is to use a resource that contains useful information like the tips above. One such place is located at http://www.home-mortgage-calculator.com/, which will help you identify and ask the right questions before you bid on a property or sign any contracts. You can also use the free online calculator to help you see the real cost of your home after you pay interest on it for the duration.
Budgeting For a New Mortgage – How Much is Too Much?
There are many reasons that first-time homebuyers are prone to paying more for a home than they can afford. One of the most common is looking at houses before they've looked at their budget. They may have a general idea of how much they can afford to spend and so they look at homes until they find the perfect one. They're so excited to get moved in that when the mortgage papers come back with a higher monthly mortgage payment than they expected, they sign anyway and thus begins years of financial pain because they've quite simply overextended themselves.
A simple way to prevent this situation is to decide exactly how much you can spend before you look at your first house. A mortgage loan payment calculator makes it simple. Just plug in some numbers and see what your mortgage payment will be. Typically it can include things like homeowners insurance, taxes, and other expenses that are frequently rolled into a mortgage payment. Once you have an idea of exactly how much you can afford then you can begin to look at homes in that price range. Don't even consider a home that doesn't fit within a budget that you're comfortable with.
Article Posted by Expert Author: 3 on 08/23/2013
Article Posted In: Home Mortgage Calculator
Setting Up a New Budget – How to Get the Household Expenses in Order
Setting up a budget may seem challenging, but it doesn't have to. One of the reasons that people often feel overwhelmed and reluctant at the idea of setting up a budget is because they feel fairly positive that they're not going to follow it. When you go into something with an expectation like that, who wouldn't be discouraged? The key is to be realistic. Too often families try to budget every penny or make a decision that they won't have any 'fun money' at all. Which is simply not sustainable. A better option is to give yourself a slush fund, even if it's small, so you don't feel that you're being punished when you follow your budget.
Another tip is to get a very specific idea of what your finances actually look like now and what they're likely to look like in the future. For example, using a home mortgage calculator with taxes will give you an idea of what future mortgage payments will look like. You can then plan your budget for not just today but to prepare you for the future. The best budget is one that realistically plans for your present, looks ahead to prepare for your needs in the future, and is simple enough to follow on a day to day basis.
Article Posted by Expert Author: 3 on 07/09/2013
Article Posted In: Home Mortgage Calculator
Curious Questions – How Much Interest Will You Pay Over the Life of Your Mortgage?
Understanding the intricacies of your mortgage can be difficult for anyone. The truth is that complicated equations work together and include not just the amount of loan you took out and your interest but other factors too, like insurance costs and taxes. Different lenders will roll different things into your mortgage, and in some cases it may be different from one state to another. But one thing is almost always true: Your monthly mortgage payment likely includes more than just principle and interest.
It's quite convenient that some things are included in a mortgage payment, but it can also make it difficult to figure out how much you're actually paying in interest. Luckily a handy tool can help. The home mortgage interest calculator lets you enter a few simple numbers and gives you the information you need on how much interest you'll be paying over the course of your loan. This can make it easy to figure out when it's worth it to lower your interest. For example, if you know you can lower your interest rate by 2% but you only have 10 years left on your loan, then the calculator can show you how much interest you'd save – and you can then compare that to how much it would cost to refinance.
Article Posted by Expert Author: 3 on 06/04/2013
Article Posted In: Home Mortgage Calculator
The Truth About Refinancing – When to Take the Plunge
If it were free to refinance then everyone could simply do it once a year and be sure they were always getting the best deal. However, there are fees involved – which could be significant – and it's also quite a time consuming process. So the question always remains – when is it worth it to take the plunge? First of all, ask yourself why you're refinancing. Once you've established why you're doing it you can often decide if now is the right time. For example, if you want to take advantage of a housing boom in your area then time may be of the essence.
Next you want to think realistically about current market conditions. Luckily, there are many tools at your disposal that can tell you a lot about how much you'll likely to save, how much it will cost, and whether or not interest rates are likely to rise or go down in the near future. Of course you'll also want to consider the current value of your home and whether or not it's likely to go up or down. A refinance home mortgage calculator could be a great tool to help you make the most informed decision about your next move.
How Much Can You Save By Paying More Than Your Mortgage's Minimum?
You've likely heard the advice that if you want to save big on your mortgage, paying more than your monthly minimum can have a huge impact. How does it all work? Surely you'll get it paid off sooner because you'll be paying off the balance faster than you've agreed to, but there can be a larger impact as well. First of all, when you pay the principle down then you'll pay less interest over the course of the loan. Depending on how high your interest rate is and how much additional you can pay down, this can have a significant impact. Use a mortgage interest calculator to discover exactly how much you can save.
You should also consider that paying down more of the balance on your loan could make your situation more attractive if you want to refinance. One of the many things a lender will take into consideration is how much equity you have in your home, which, put simply, means how much of your home is paid for. This also makes it easier to use your home as collateral for other types of loans. The more you have paid off, the higher your cash flow is and the better position you'll be in financially. Check out our free resources at www.home-mortgage-calculator.com to learn about your options in budgeting for a new home mortgage, or determining how a refinance might help you achieve your goals.
Article Posted by Expert Author: 3 on 05/06/2013
Article Posted In: Home Mortgage Calculator
Get the Total Picture – Choose an All-Inclusive Mortgage Calculator
There are many types of mortgage calculators available but they're certainly not all created equal. Which one is right for you? First you need to consider what your goal actually is. For most people, they want to find out what their mortgage payment is likely to be. For that result you must look for a calculator that gives you all the information. Some will simply take the amount of the loan and divide it by the number of months you'll be paying your mortgage. However, this doesn't give a full picture of what your mortgage payments will look like.
Another option is to use a mortgage calculator with taxes and insurance. This will give you a more clear picture because it will include information on taxes and insurance, which are frequently included in your mortgage payment. You can then decide how much of a home you can afford based on what your actual payments will be. However, remember that there is always plenty more to consider. For example, you'll have to take care of maintenance on your home and you may have to pay for things like trash removal, snow removal, or landscaping. The true cost of owning a home includes all these incidentals plus the amount you'll pay to your mortgage company each month.
Article Posted by Expert Author: 3 on 04/15/2013
Article Posted In: Home Mortgage Calculator
Is a Good Faith Estimate Actually Useful?
The federal government heavily regulates many aspects of the home loan process, and one of those aspects is a document known as a Good Faith Estimate. But what is a GFE and why is this short spreadsheet so important the Feds require lenders utilize them?
Receiving Your Good Faith Estimate
Your prospective lender needs to give you a GFE within 3 days of receiving your loan application. The timing of receiving this document is absolutely crucial to the whole loan acceptance process. Why is that?
The Good Faith Estimate given to you by your prospective lender breaks down all of the costs, fees and miscellaneous expenses involved in acquiring your loan. In addition to making interest payments and gradually cutting down the principle of your loan, in addition to making a down payment on your loan when you receive it, you also need to pay a lot of other costs. Your GFE outlines these upfront costs and makes it easy to compare the true price of your loan, and receiving multiple GFEs is a great way to weed through home mortgage offers made to you from multiple lenders.
For more useful tips like this one, check out http://www.home-mortgage-calculator.com/ where we have assembled lots of useful information, including an explanation of industry terminology, articles that give helpful advice, and of course our free online calculator.
How to Pick an Offer Price on a Property You Want
It’s a crucial moment in every home sale- the moment where you make an offer on a property. Your offer isn’t quite iron clad until the seller accepts the offer, but it is a good faith statement of what you’re looking to pay for a property. Making the right offer is as much a trick of negotiation as it is an element of intelligent valuation.
Strike the Right Balance When You Make an Offer
In general you need to assume the asking price on a property is higher than you will ultimately need to pay for that property. In every negotiation both parties will make offers that are unrealistic, and the asking price the property’s seller makes is an overly optimistic dream, a best-case-scenario fingers-crossed value they would love to receive but which they don’t expect to fall into their bank account.
What does this mean for you? It means you should make the same sort of unrealistic bid when you make an offer on a house- you should not only bid lower than the property’s asking price, you should bid lower than you expect the property’s owner will accept. This gives you room for negotiations.
Of course, before you make a bid on any properties, you should consult an online home mortgage calculator to determine what a monthly payment will look like after you factor in taxes, PMI and homeowners insurance. This will enable you to determine a good range of home prices you can afford.
Is Renting vs Buying a Simple Decision?
Should you rent or should you buy? This seemingly simple question is filled with a lot of assumptions about what represents the best financial decision for both the short and long term. Yet when it comes down to it the Renting vs Buying debate is a lot trickier than it initially sounds.
Renting vs Buying, Which is Best?
The fact of the matter is this- renting is good for some people some of the time and buying is good for some people some of the time. There is no one answer to this question. That’s because people have different goals, different plans and different financial circumstances at different points in their life.
If you want to answer the “Renting vs Buying” question you need to take an inventory of where you’re at in life and what you want from your property. Likewise you need to read a detailed list of the pros and cons of each.
You are the only one who can answer this important question. We can help with our free online home mortgage calculator. This useful tool can be referred to and utilized as often as you like as you seek to determine exactly what works in your budget and your specific situation. Take into consideration the housing market, your credit rating, your short and long term prospects for employment and earning, among other things.
Subprime Mortgages Back on the Rise or Still Shrinking?
Mortgages given out without backing from the government, also known as the primary cause of the 2008 financial crisis, continued to shrink according to new data from the last financial quarter, reports Bloomberg. For the first time in nearly a decade the market for these mortgages dropped below $1 trillion dollars.
What’s Causing this Contraction?
According to Bloomberg the primary reason why these securities are falling is due to the massive number of homeowner defaults that occurred over the last 4 years.
Interestingly enough even as the market for these loans shrinks investors continue to pour money into them. The subprime mortgage market has delivered huge 30% returns over the last quarter and an increase in the number of individuals re-entering the housing market seems to bode well for investors looking to turn a profit with these bonds, sparking a few concerns that the same “herd mentality” among investors leading to the 2008 financial crisis may be rebounding as well.
While many of the subprime mortgage schemes from yesteryear are now illegal or defunct, there will always be lending institutions that try to game the system by offering deals that may not be in the best interest of the consumer. Make sure you refer to your home mortgage calculator to understand all of the implications of the deal you are being offered, both in the short term and long term.
Why You Need PMI On Your Home Mortgage Calculator
A lot of the time consumers use calculators to start piecing together the hidden secrets of their home loan they leave a couple crucial variables out of the equation. One of the most commonly forgotten variables is the insurance everyone needs to pay on their property. Which means if you want the most accurate monthly payment tool around you need to use a home mortgage calculator with PMI.
Why is a Home Mortgage Calculator with PMI So Great?
You’re going to need to pay two types of insurance on your property. Homeowners insurance, which covers damages incurred by your property (primarily damages caused by catastrophes) and private mortgage insurance, or PMI, which protects your bank in case you enter foreclosure and they need to reclaim and resell the property.
How much you pay in PMI relates to a number of variables, not least of which is how safe of an investment the banks consider you, the same basic metrics they use to determine your interest rate. Including this variable through use of a home mortgage calculator is absolutely critical towards making sure you run the most accurate equations possible.
At The IOU Calculator, we have assembled useful information such as industry terminology, explanations on how various loans work, and articles to help you identify, ask and answer pertinent questions related to your specific situation. By taking advantage of this information, you will be able to enter into a contract with your eyes wide open.
What Can Home Mortgage Calculator Extra Payments Do For Me?
If you’re like most people you probably just pay the bare minimum on your mortgage every month. After all, if you’re like most people money’s probably pretty tight right now and you’re not exactly in a rush to go out and stretch your budget even further than it’s already pulled so you can go and pay more money than you have to month after month. But the second you take a step back and survey your financial life from a broader perspective you’ll see just how much you have to gain from making extra payments every 30 days.
The benefit of making extra payments is pretty easy to understand. The more you pay every month the more goes to your principal. The more goes to your principal the less you pay in interest over the life of your loan.
Making extra payments and spending less on your loan can save you tens of thousands of dollars over the terms of the loan and using the right tool to determine your home mortgage calculator extra payments lets you take figure out just how much spending a little more every month will save you in the long run.
Another strategy during this timeframe where we are enjoying historically low interest rates is to look into a refinance of your existing mortgage. You might be able to shorten the length of your loan as well as get a lower interest rate, which in the long run will save you thousands of dollars. Check out our home loan calculator to determine if this strategy makes sense for you.
Understanding the Benefits of an Online Mortgage Calculator
What questions do YOU have about using an online mortgage calculator?
How about the first, most basic question of all- what does one of these home loan calculators actually do?
Well, a mortgage calculator is a special calculator designed to incorporate all of the factors as well as all of the formulas that go into the price of a mortgage (for the short term and long term).
Why Do I Need a Special Calculator?
This is another common question people ask about using a special calculator to work out their home loan- why do they need to use a SPECIAL calculator in the first place? Why can’t they work out their home loan using a normal, everyday, run-of-the-mill calculator?
There are a couple good answers to this question, but they all revolve around the fact that unlike a specialized calculator, a normal calculator isn’t designed to handle all of the intricacies of a home loan, and as such it’s much faster and easier to just work with an online mortgage calculator.
Besides simplifying calculations that at best can be tedious, and at worst can be confusing, such a tool helps you enter into negotiations with a lending institution have a good handle on what type of loan agreement terms you will be able to handle in your existing budget. If a bank cannot offer you something that you can afford, at least you will know it early on in the process.
Using Your Simple Mortgage Calculator
True to its name, a simple mortgage calculator is pretty easy to understand and even easier to make good use of. And when you learn how to use one of these home loan calculators you will be give yourself the power to figure out the optimal mortgage to meet your needs without having to consult with high priced or potentially untrustworthy advisors, lenders or so-called “experts.”
How Can I Use a Simple Mortgage Calculator?
A loan calculator that focuses on working out the intricacies of a mortgage will include a few extra calculations and empty slots for precise values than a more general calculator. For example, a mortgage calculator is going to give you the functions you need to automatically calculate how loan size, mortgage timelines, interest rates, annual taxes and insurance all factor into your monthly and total long-term payments.
The right simple mortgage calculator makes figuring out the right terms for your upcoming, or existing, home loan fast, convenient and easy. We provide a tool free for use to assist consumers in making educated decisions regarding this important decision.
At The IOU Calculator, we not only provide this tool, but we also have assembled current information on the industry in the form of short, easy-to-read articles that help you understand the direction your research should take you further. We also demystify the process through useful articles on confusing terminology and helpful how-to articles.
Can I Really Calculate a Mortgage?
Do you feel intimidated by the thought of trying to figure out how to calculate a mortgage? If you do you’re not alone. Lots of people, in fact most existing or potential home owners, don’t believe they could ever work out the details on their mortgage.
You’re Wrong- You Can Calculate a Mortgage
Anyone with an hour of free time can run the calculations on their existing or prospective mortgage as many times as they want to, simply, easily, and without incurring any major headaches. All they need to do is get together the right values related to their mortgage (principal, interest rate, length, taxes, insurance etc,) and the right tool to do the calculations.
With this tool and these values, and a good step-by-step tutorial, absolutely anyone can calculate a mortgage who wants to. And considering the huge benefits of running mortgage calculations on your own, this is a very good thing. We have provided a home mortgage calculator free of charge to assist you in this process.
Why Aren’t Mortgage Refinancing Gains Stimulating the Economy?
Home owners have seen a nice little boom from mortgage refinancing over the last couple years, but in a recent article in Bloomberg analyst Cheyenne Hopkins wonders if this new influx of cash will actually see its way to benefiting the U.S. economy anytime soon.
Mortgage Refinancing= Big Cash Flow Gains
One of the biggest reasons home owners refinance their mortgage is to free up additional funds and increase their positive cash flow. Refinancing a mortgage offers a way to either reduce monthly payment rates or build home equity faster, both of which are usually seen as good for consumers and the economy at large.
But these days home owners are funneling their gains from a recent refinancing rush into savings and across-the-board debt reduction. While Hopkins may see this as a bad thing, overall the more stability Americans can create in their financial life the better, and intelligent mortgage refinancing allows just that.
At http://www.home-mortgage-calculator.com/, we strive to provide the consumer with useful information on the industry to enable them to make wise decisions regarding their personal finances, particularly as it relates to taking out a new loan, or refinancing an existing one to achieve better terms. Our online resource is free to use.
The Myth of Mortgage Interest Rate Calculator Expertise
Do you know what tools you need to use to get the best possible terms on your mortgage? And even if you know what tools you need to use- do you know how to use them to figure out the best way to tackle your home loan? The tool you need is a mortgage interest calculator, and using one is easier than you believe.
Don’t I Need to Be an Expert to Use a Mortgage Interest Rate Calculator?
Not at all. Sure, some people understand the fundamentals of how home loans and interest rates work better than others, but at the end of the day anyone can understand these terms and how they impact mortgages.
Experts like to make home loan calculations and interest rates seem more complicated than they are so they can profit off your insecurity. By learning how interest works and how to use a mortgage interest rate calculator you can finally acquire favorable mortgage terms.
In fact, you might employ this type of strategy in assessing terms of debt, so that you can approach your budget from a multi-pronged approach. Any existing debt you are carrying should be assessed to see if you can lower your interest rates and save in the amount you are paying overall.
How Should I Use a Mortgage Loan Payment Calculator?
The ONE thing you can do to improve the terms of your mortgage is use a mortgage calculator to run the numbers, test a few options, and figure out the best possible payment schedule for YOU. That being said, a mortgage loan payment calculator can be used the right way or it can be used the wrong way.
What’s the Right Way to Use a Mortgage Loan Payment Calculator?
First of all, you want to run a LOT of calculations on your tool. These calculators work very quickly and very efficiently and the more calculations you run, the better the terms you will eventually find.
Additionally, you want to make sure you run a LOT of calculations on EVERY property you’re interested in buying. Because of fluctuating factors like loan size, interest rate, taxation level, different properties will turn over different results. Using a home mortgage calculator is the best way to make sure you always enter your loan negotiations with all the right data.
You Need a Full Feature Mortgage Interest Calculator
How many variables did you take into consideration when you figured out what sort of mortgage you wanted to take on? Did you use a mortgage interest calculator that gave you a full 360-degree picture of every cost and expense related to your upcoming home loan?
If you didn’t use one of these calculators then you probably didn’t get the loan that best served your financial situation.
What Should a Mortgage Interest Calculator Feature?
At the very least one of these calculators needs to factor interest rates into the equation and help you determine how different rates will impact the short and long term payments you make. But interest rates are just the tip of the iceberg. You also want a calculator that includes closing costs, taxes, and insurance, at the very least.
Using the right mortgage interest calculator will make a HUGE difference when you set out to grab yourself the best home loan you can find.
At The IOU Calculator, you will find useful information to help you understand how to go through the loan process and speak intelligently with the lending institution you are doing business with. Taking out a mortgage need not be a daunting task with the right online resources to refer to.
Why is Learning Mortgage Terminology 101 Important?
How come people make so many poor choices when they sign up for their mortgage? Is it because some people are just naturally smarter and savvier than others? Or is it because the banks fill the home loan field with so much jargon it’s difficult for ANYONE to understand what they’re negotiating if they don’t first take a quick crash course in mortgage terminology 101?
What’s Covered in Mortgage Terminology 101?
Here’s the thing- you don’t need to know every single complicated and confusing term in the mortgage field to get a great deal on your home loan. You just need to know the basic terms to get by… those technical words, phrases and acronyms that pop up most often. These are the terms you’re most likely to encounter and the terms most likely to sabotage you if you don’t understand them.
Spend a couple minutes reviewing mortgage terminology 101 and you will walk into your negotiations confident and ready to grab a great loan.
We also offer useful tools for calculating a home mortgage like a calculator that factors in variables like taxes, interest rates, private mortgage insurance, homeowners insurance and more. Before you walk into a lending institution, spend a little time educating yourself on the terminology and get a good handle on the numbers so that you can get down to the business of negotiating your home loan.
Will a Home Mortgage Calculator Help Me?
It shouldn’t come as much of a shock, but if you sit down to negotiate your home’s mortgage with your bank without doing a little preparation you’re going to get taken to the cleaners! If you want to retain a whole lot of the power in these negotiations you need to spend a little time tooling around with a home mortgage calculator.
How Can a Home Mortgage Calculator Help Me?
Using one of these calculators you’ll be able to precisely figure what you can actually pay every month and how those payments will play out in the short and long term. With this knowledge you can reduce interest payments, save a boatload of money and figure out what sorts of monthly bills best benefit YOU and not the bank!
Thankfully finding a home mortgage calculator is easy. Taking even one hour to sit down with a calculator and a snapshot of your financial snapshot can make a huge difference over the next 10, 20 or 30 years of your life.
Refinance Home Mortgage Calculator Savings to Expect
Sticking with the terms you accepted when you first took on your home mortgage is usually a fool’s game. It’s never too late to renegotiate with your bank, and using a refinance home mortgage calculator will help swing the talks in your favor.
Will a Refinance Home Mortgage Calculator Help Me?
There are plenty of situations where one of these calculators will give you the edge in your negotiations with the banks. If you want to grab a better fixed rate mortgage or determine if you could set superior caps on your ARM, if you want to build home equity faster or alleviate your monthly payments… no matter how you want to renegotiate your loan, one of these calculators will help you make the right decisions.
When it comes down to it a home mortgage calculator will help YOU call the shots on your home loan and make sure you get the loan that best meets YOUR needs, and not the banks.
How Much Interest Will You Pay Over the Course of Your Loan?
For those who aren't savvy in the financial and real estate industries, it can be tricky to figure out what a good interest rate is. Sure, the lower the better – but how much is too much? The first thing to consider is not just what your interest rate is but how much interest you'll pay over the course of your loan. A handy tool is the free mortgage interest calculator. This tool lets you answer some questions like how much the principle of your loan will be, how many years you'll take to pay it off and other questions, and then tells you what your total interest will be.
There are many reasons that this type of tool can be helpful. First, it will let you know if it's worth it to wait a little while to get your mortgage. For example, if the interest rate that's currently available to you is high, then you can compare the total amount of interest you'd pay if you took that interest rate versus waiting for rates to drop and getting a lower fee in the future. If it's a matter of not much cash, then you may find it worth it. But if you find that you'll be paying many thousands more over the course of your loan, then it could be a good incentive to wait.
What's the Purpose of a Home Mortgage Calculator?
Many people who are just starting out in the home buying world aren't sure of the first step to take. Often they hear about a home mortgage calculator but don't know if it's the right choice for them or how it can really help. Put simply, the purpose of this calculator is to help you know approximately how much your monthly mortgage payments will be. Most people realize that you can't simply take the price of the home and divide by the number of months on your loan. Instead, there are complicated fees and interest to be considered.
The way it works is fairly simple. You answer a few questions, including how much the home will cost and how much you expect your interest rate to be, as well as the length of the loan, and then you're able to get an estimate of how much your monthly payments will be. It's that simple! It's a great first step for those who want to start buying but aren't sure what their price range should be. As you consider what to pay per month, remember that you will have costs you didn't have when you rented, such as upkeep on the home, garbage removal, and others.
When to Assess Your Mortgage Options – Find Your Perfect Medium
The home buying process can be a wonderful experience but it can also bring with it unique challenges and struggles. Many of the issues arise from would-be home buyers who want to skip straight to the stuff they like: Shopping for houses. The truth is that doing the tedious work first will likely yield to a better result. This is because once homebuyers find a home that they want, they're often willing to go to any length to make it fit financially – even if it's not really within their budget. The easiest way to avoid this is to know exactly what you can afford before you start looking.
Meet with a bank or two, use a home mortgage calculator, and find out not just what the bank will offer you but what you can afford. Remember that your mortgage payments likely include a number of things, for example homeowners insurance and possibly taxes, but they won't include maintenance costs and other expenses. Consider what you can truly afford without making significant changes to your current lifestyle and only look at homes within that price range. This will prevent you from falling in love with a house outside of your reasonable budget.
Is Now the Time to Refi? Check Out a Refinance Mortgage Calculator
Now may be the perfect time for you to refinance your home – or it might benefit you to wait a few years. While the current market will have an impact on the right time to refinance, there are also many other factors that have to do with your own situation. A refinance mortgage calculator is the simplest tool that can give you a ton of information. You simply answer a few questions and you can instantly find out not just whether or not you could save every month but how much you could save.
Remember that finding out if you can save money is only part of the equation. Sure, you may be able to knock a hundred or so dollars per month off your mortgage – which can certainly free up some cash on a monthly basis. But at what cost? There are fees associated with refinancing your home, and if those fees are high and the savings on your monthly payments are low, then it may not be worth it. Be sure to also consider the climate in your current neighborhood. Have home prices dropped but are expecting to rise again? The long term investment potential for your home will have an impact on whether now is the right time to refinance.
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Article Posted by Expert Author: 1 on 01/16/2013
Article Posted In: Home Mortgage Calculator
Is Understanding Amortization Enough?
It’s easy to understand the basics of how mortgages work but it can be tricky to understand some of the finer points of these big, important loans. Using home mortgage calculator amortization to figure out how much you will pay over the life of your loan is a good idea but it doesn’t quite get at the full truth of your loan’s balance between principal payments and interest payments.
What Consumers Often Miss
Seeing as minimum monthly mortgage payments tend to cost exactly the same every time your statement finds its way to your mailbox you’re forgiven for assuming the balance between principal and interest payments is the same every month. But it actually isn’t. Banks front-load the interest rate payments on a mortgage over the first 1-2 decades of the life of a loan.
In order to fully understand the full picture and the importance of paying off your home loan as quickly as possible you must understand how front-loaded interest works.
The good news is you can learn about how lending institutions configure loans in order to understand how to tweak your budget to make sure you maximize your savings. Using a good home mortgage calculator is a good strategy for looking at various loans that you may have access to you.
Home-Mortgage-Calculator.com Launches New Site
We are thrilled to announce that we have officially launched our new site, Home Mortgage Calculator! We are confident that it will become a truly valuable resource for anyone looking into either purchasing a new home, or even considering a refinance of their existing mortgage. You will find several pages built with the consumer in mind. Our goal is to educate and advise on how to calculate your mortgage costs, including taking into consideration interest rates, taxes, homeowners insurance and more. With historically low interest rates available to consumers, banks are opening their doors to qualified customers who wish to purchase a home or refinance their loan to take advantage of these ultra low rates. We also cover industry jargon so that you can feel confident as you deal with a lending institution, as well as be able to understand everything that goes into what your monthly mortgage repayment will look like after the fact. Let us be your trusted resource in navigating these exciting waters, enabling you to understand the process while accurately estimating your costs.
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