| it comes to taking out a home loan, the numbers are | | | | fixed rate loan, whether paying fortnightly will make a |
| important. You need to know how much money you | | | | difference, and so on. |
| have for a down payment, how much you're earning, | | | | Additional Payment calculator - mostly this is used for |
| and how much you can afford to pay in repayments. | | | | determining the effect of a one time lump sum |
| It's enough to drive you crazy, even with a good | | | | payment, but can also be used to work out the effect |
| pocket calculator! That's where mortgage calculators | | | | of a regular extra payment, say $100 a month. You |
| can be incredibly useful. They can take all the figures | | | | can adjust almost anything, including amounts, |
| you have and turn them into outcomes. You can | | | | frequency of additional payments and interest rates. |
| change one variable (eg size of down payment) and | | | | Refinance calculator - this mortgage calculator is |
| know what effect that will have on your repayment. | | | | mostly used for comparing different mortgages to |
| And a mortgage calculator can do it in the blink of an | | | | determine whether refinancing will save you money. |
| eye. | | | | This particularly works well if you have more than one |
| Like most things to do with home loans, though, it's not | | | | mortgage and want to merge them. You can also |
| as simple as one mortgage calculator that does one | | | | factor in things like refinancing costs, for example what |
| type of calculation. Instead there are numerous | | | | it will cost to pay out your existing loan. If those costs |
| different types of mortgage calculators, and some | | | | are very high, it may not be worthwhile refinancing at |
| which combine more than one feature. So it helps to | | | | all. |
| know what exactly you want to mortgage calculator | | | | Amortization calculator - there are two types of |
| to calculate, so you can choose the right one. | | | | amortization mortgage calculators. One works out the |
| Affordability calculator - this type of mortgage | | | | savings a borrower makes on his tax based on the |
| calculator basically determines what you can afford. | | | | interest paid, and the other determines the appreciation |
| This is based on your current income and expenses. | | | | of the mortgaged property. |
| Quite often with this type of calculator you can alter | | | | Comparison calculator - this one is handy is you have |
| the amount of down payment you will be contributing, | | | | two very similar mortgages to choose between. |
| and see the effect it has on affordability. Sometimes, if | | | | Usually you can change different elements of each |
| you're a bit close to the wire, putting in slightly more | | | | loan, such as interest rates or payment details, to see |
| down payment will be enough to make the loan | | | | the effect. Mostly mortgage brokers use this type of |
| affordable. | | | | mortgage calculator when making their |
| Consolidating debt - these calculators look at the | | | | recommendations. |
| various options you have when consolidating debt, and | | | | This is only the tip of the iceberg! There are mortgage |
| how that will affect your home loan. These options | | | | calculators for almost anything you can think of in |
| could include: merging non-mortgage debt (i.e. credit | | | | regards to a home loan, but the ones above are |
| cards) into your existing mortgage, refinancing and | | | | certainly the most common. If you visit any of the big |
| existing mortgage and paying out a couple of extra | | | | lending companies online, such as Freddie Mac or |
| debts at the same time, or perhaps a situation where | | | | Fannie May, you will be able to visit their interactive |
| you have both a first and second mortgage on a | | | | pages and do your calculations online. Some other |
| property and you want to work out the cheapest | | | | sites even allow you to download a mortgage |
| method of paying the loans out. | | | | calculator for free. |
| Payment calculator - basically, this mortgage calculator | | | | The important thing is to let a mortgage calculator do |
| works out your monthly payment on a loan. You can | | | | the work for you. There's no point spending hours |
| use this to determine what effect a change in interest | | | | slaving over your calculator or setting up a |
| rates might have on your payment, whether you | | | | spreadsheet, when an online mortgage calculator can |
| would be paying more or less if you swapped to a | | | | do the same thing in seconds. |