Mortgage Calculator Quick Reference Guide

A Home Buying Article Contributed by Cindy Mcnatt

What is a Mortgage Calculator?

When buying a home it is a good idea to know in advance what your monthly payments will be. The tool that is indispensable is a mortgage calculator. Simple and easy to use, a mortgage calculator is a handy financial "must have" that requires just three inputs to be useful: amount of money borrowed, interest rate and length of loan. Put these three items in and in a snap, you can determine exactly what your monthly payment will be. But suppose you need to know more than the standard 30 year fixed rate monthly mortgage payment?

Mortgage Calculators - beyond the Basics

Mortgage calculators can do many things beyond the basic PMI term calculation. Can't decide to go with a standard fixed rate versus ARM mortgage? Use your mortgage calculator to decide which loan would be best for you. Find out if you can afford your dream home without leaving your computer. Maybe it would be better to keep renting rather than purchase at this time. Should you take a 15 year or 30 year loan? How do "points" affect your monthly payments? Should you prepay your loan?

These are some of the decisions that using a mortgage calculators can assist you with. If you already own a home and want to refinance, mortgage calculators can help there too. Comparison shop for loans using a mortgage calculator to find out which lender has the best terms. Perhaps you don't have quite enough money for a down payment and want to know if a second mortgage would be wise. There are calculators which perform that function as well.

Calculators found on the web are designed for ease of use, most use a fill in the blank format and then you click the "calculate or submit" button.

Find a Mortgage Calculator

Here are a few websites that offer mortgage calculators for free:

http://www.mtgprofessor.com/calculators.htm - good information, well organized and easy to use calculators. Has a wide range of mortgage calculators for almost every scenario.

http://www.jeacle.ie/mortgage/ - this site's graphics function display in chart format loan balances, amortization, and interest based on your input data. Simple and easy to use.

http://www.mortgage-calc.com/ - this site has a comprehensive list of mortgage calculators. Easy to use site.

http://www.mortgage101.com/Calculators/TaxBenefits.asp? p=mortgage3 - now that you are serious about buying a home, how will your purchase affect your taxes - try this calculator to see if you will benefit from tax advantages.

http://loan.yahoo.com/m/mortcalc.html - this site has a ready reference of mortgage tools and calculators.

Start Loan Shopping with a Mortgage Calculator

If you are a serious home buyer or just "shopping" using a mortgage calculator takes the guesswork out of the picture. It's a no hassle way to see alternative views of your financial picture. Made easier than ever with the advent of the internet, you are sure to find a calculator for your use.