Interest calculators are a dime a dozen on the web. The important thing to take away from your interest calculations is that a home purchase is an investment. But unlike other investments that accrue interest in your favor, interest paid on a home loan goes away forever. For this reason it is important to consider what the trend for property values is in the area you are shopping for a home. If property values are increasing, and you can get a good rate of interest, you can have hopes of making money off your investment if you go to sell one day. If you hope to never sell, all you have to concern yourself with is how manageable the monthly payments will be for you and your family.
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Interest calculations are done for you with the help of a mortgage calculator that generates an amortization table. If you look closely at the mortgage calculator input offered on this site you will see that there is the option of including extra monthly payments. If you do this you can see a dramatic impact on the amount of interest you pay over the life of your loan. Even one extra payment per year can save you thousands in interest over the life of a thirty-year loan.
Interest calculators are simply spiced up calculators that take the tedium out of compound interest calculations. If you are thinking of getting a mortgage but you want to have an idea of what the monthly payments might look like, give one of our free calculators a spin.
Without getting into the mechanics of interest calculators you can plug in your loan amount, proposed interest rate and the length of the loan and get back the amount of the monthly payments. Our mortgage calculator also gives you what is called an amortization table. These tables show how much interest you will pay each month, and also how much you pay each year so you know what you can expect to use as a tax deduction. You will notice that with any loan the amount of this deduction goes down every year as you pay off more of your loan.