| Mortgage calculators are helpful when comparing | | | | not understand that mortgage loans are front loaded |
| mortgage loan offers. You can specify the total loan | | | | with interest at the beginning of the loan; it is often |
| amount, term length, interest rate, property taxes, | | | | surprising to see how little of your payment is actually |
| homeowner insurance and private mortgage insurance | | | | going towards paying back the principal loan balance. In |
| amount to determine how much your month payment | | | | the early years nearly all of your monthly mortgage |
| will be. Term length is the duration of the mortgage | | | | payment goes to interest. |
| loan; mortgage terms vary from 1 to 5 years to 15 or | | | | There are a variety of free mortgage calculators |
| 30 years. The interest rate is the percentage your | | | | available on the Internet. Make sure you are using one |
| lender is charging you for borrowing the money. | | | | that includes taxes and insurance to get an accurate |
| Property taxes are paid to your local government and | | | | picture of your monthly mortgage payment. When |
| insurance is required by your lender and is often paid | | | | shopping for a mortgage loan it pays to do your |
| by a third party escrow company. | | | | homework first. Establishing a monthly budget and |
| If you are using a graphing mortgage calculator it will | | | | utilizing a mortgage calculator will tell you exactly how |
| graph the amortization table for you. This information is | | | | much mortgage you can afford before you start |
| helpful to see how fast the principal balance of the | | | | shopping around. Using a graphing mortgage calculator |
| mortgage loan is being paid down and what is being | | | | is smart financial planning. |
| paid to your lender in interest. Many homeowners do | | | | |