| A mortgage calculator is basically an online calculator | | | | Principal is the amount of money borrowed; loan costs |
| that works in much the same way as an ordinary | | | | consist of payment for closing, evaluation, loan |
| calculator. The difference is that it will specifically allow | | | | instigation fee and other settlement costs. Mostly the |
| a person to calculate the actual costs of his/her | | | | mortgage calculators take into account two sets of |
| mortgage. These calculators are available all over the | | | | information, loan information and property information. |
| Internet - some are situated on lender sites and only | | | | The different types of mortgages for which a |
| work with their own products and some are to be | | | | mortgage calculator can be used are balloon |
| found on financial 'portals' or on broker sites and will | | | | mortgage, adjustable rate mortgages, jumbo |
| have a broader range. | | | | mortgages, sub-prime Mortgage and assumable |
| A mortgage calculator is useful in calculating monthly | | | | mortgage. But most commonly used type is |
| mortgage repayment at a given interest rate or for a | | | | Adjustable Rate Mortgage (ARM) Calculator, which |
| specific mortgage product. It also compares | | | | offers attractive interest rates but the payment is not |
| repayment costs on different types of mortgage. It | | | | fixed. It is also helpful in determining adjustable |
| calculates time and money a person could save by | | | | mortgage payments and a fully amortizing ARM. The |
| overpaying on mortgage. A mortgage calculator is | | | | monthly payment is calculated to payoff the entire |
| helpful in finding out the additional costs of products | | | | mortgage balance at the end of the term. The term is |
| services that are mortgage related such as stamp | | | | typically 30 years. After completion of fixed interest |
| duty, repayment protection insurance, buildings and | | | | rate period, the interest rate and payment adjusts at |
| contents insurance, convincing estimates. | | | | the frequency destined. |
| A mortgage calculator helps homebuyers to decide | | | | ARM loans have four major types of payment options |
| about their monthly payment usingprincipal, interest rate, | | | | such as minimum payment, interest-only payment, fully |
| loan term, loan cost, property information and insurance | | | | amortizing 30-year payment and fully amortizing |
| costs. | | | | 15-year payment. |