| I have been asked on a lot of occasions what do the | | | | period required to pay off the loan. Interest rate is |
| mortgage calculators do? What is the difference | | | | annual cost borrowing the loan, also referred to as |
| between a mortgage calculator and a normal | | | | annual percentage rate (APR). The loan amount is |
| calculator. How can you benefit from a using a | | | | amount you plan to borrow from the lender as loan. |
| mortgage calculator? Keep reading. I am going to | | | | Amortization schedule can viewed and printed on |
| show you a secret to save a lot of money on your | | | | some online mortgage calculators, which is a spread |
| mortgage. | | | | sheet listing monthly or annual payments of interest |
| The basics you should consider. | | | | and principal. I promised to share a secret with you and |
| A mortgage is a loan secured by real estate, | | | | here it is! As you may be aware, banks or lenders |
| mortgage is removed when the mortgage loan is paid | | | | want to recover their interest first. Therefore more |
| off, thus freeing the property from mortgage debt. The | | | | goes towards to interest than to principal in the first |
| lending institute charges a fixed or variable interest rate | | | | few years of the mortgage term. You may have |
| (a percentage per annum eg. 5% p.a.). on the new | | | | noticed very little of the original loan amount is reduced. |
| purchase or refinance mortgage. | | | | The secret to saving years or decades off the |
| Most home mortgage loans in the Canada are | | | | mortgage term, is to reduce the principal balance of |
| normally amortized over a period of 25 - 35 years. | | | | your mortgage. Even by simply paying extra small |
| |Calculating amortization on a normal calculator can be | | | | amounts toward your principal each month in addition |
| discouraging. A mortgage amortization calculator can | | | | to the normal payments, you can dramatically |
| calculate your monthly payments of mortgage and | | | | decrease your mortgage balance. This method can |
| interest, if you know loan term, interest rate and loan | | | | knock years off the your mortgage term, which |
| amount. | | | | means savings of thousands or even tens of |
| The loan term can be 15, 25, 30, or 35 years, a time | | | | thousands of dollars. |