Our Mortgage Interest Calculator Can Help You Save When You Refinance

How many costs are you taking into consideration when determining what you can pay every month on your mortgage? Simply figuring out how much you can contribute to the mortgage itself isn’t enough- there are plenty of other additional expenses you need to keep in mind. Likewise, if you only think about what you can afford to spend in the short term you’re going to lose out on the long-term implications of various interest rates and accelerated payment plans.

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In other words- you have a lot to keep in mind when figuring out how to best pay off your mortgage, so you need a tool powerful enough to handle multiple calculations at once.

You need a free mortgage interest calculator.

First Thing’s First - All About Interest Rates

Understanding how interest rates affect your loan repayments is simple. The higher your interest rates, the more money you will spend, both in the short and long term:

  • In the short term high interest rates mean less of the money you send to your lender pays off your loan’s principal.
     
  • In the long term, the higher your interest rate the more money you will spend by the time you eliminate your loan.

A very simple calculator will help you figure out how different interest payments work as it relates to your short term payments, but you really need a specially designed mortgage calculator to determine the long-term affect of different interest levels.

Higher interest rates mean you will pay more over the life of your loan. Until you see just how much money you’re losing by failing to refinance or renegotiate your loan you will never feel the urge to take these actions.

Finding a Fully Stocked Calculator

Figuring out how interest rates impact the cost of your mortgage doesn’t tell the whole story. You need to find a mortgage calculator that also factors in the many miscellaneous expenses related to your home loan, including:

  • Closing Costs. Many would-be homeowners remember to take closing costs into consideration far too late and end up either passing on a mortgage they thought they could afford or taking on a greater financial burden than they anticipated. Instead of getting smacked by this predictable but hidden expense, take it into consideration before you walk into your financing or refinancing negotiations.
     
  • Taxes. Taxes represent another predictable but often ignored expense that can dramatically change the affordability of your mortgage. Tax rates are decidedly NON-uniform, so make sure you first discover the tax rate on the property you want to purchase and then make sure you calculator lets you plug it into the equation.
     
  • Insurance. Like taxes, homeowners insurance rates vary wildly from property to property. Unlike tax rates, unless you still are within the threshold of having to have PMI insurance on your mortgage, you have a decent amount of control over how much you pay for insurance due to consumer choice regarding coverage levels. Finding a mortgage calculator that takes insurance into consideration is crucial, and allows you to test out the different expenses of different coverage levels to see what you can actually afford and what represents an undue expense.

If you use an interest rate calculator that doesn’t include these factors in the equation you will never be able to figure out the best possible way to pay as little as possible, in both the short and long term, on your mortgage.

 

Before you plunge into the process of taking out a loan, determine how much you can afford with a home mortgage calculator.  The right tool will take into consideration all of the "extras" that drive your monthly payment up - escrow for taxes and insurance, extra fees, and of course the interest rate itself.

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