Our mortgage loan calculator can help you find the loan you really want. Research mortgage amortization using our calculator or apply online to contact a lender about your loan.
Apply Here – Check out our short form – free quote request
A change in your mortgage term makes a huge impact on the repayment of your loan. A mortgage loan calculator can show you the difference between a 15 year term and a 30 year term. A loan in the amount of $150,000, with a 7%, with a 15 year term has a monthly payment of $1,348. which is $351 more than the monthly payment of the same loan with a 30 year term. However, at $92,683, the total interest paid on the 15 year term loan equals more than half of the interest accrued on a 30 year loan.. Though more is paid monthly, the shorter term will ultimately save a thousands of dollars. This shows that a 15 year term is definitely beneficial to those who can afford to pay a few hundred dollars extra a month on their loan.
The loan amount, interest rate, and mortgage term are all keyed into a mortgage loan calculator in order to generate an estimated monthly payment. For example, if the loan amount equals $150,000, the interest rate is 7% an the loan length is 30 years, the calculator will show an estimated monthly payment of $997. Many calculators will also generate a total of the interest paid over the life of the loan. In this case that total would be $209,263. The mortgage loan calculator can be used to show how small changes in a loan can make big changes in the amount of money needed for repayment. If the interest rate is raised just one percent to 8%, the estimated monthly payment increases to $1,100 and the total interest increases by approximately $40,000.
Mortgage loan calculators can also be used to understand the process of negative amortization. Negative amortization happens when a monthly payment is set too low to pay off accruing interest, causing the principal of a mortgage to increase instead of decrease. Negative amortization occurs infrequently and usually only with extremely questionable lenders, but when it does occur it can put homeowners far into debt and cost them the property they have worked hard for. Using a mortgage loan calculator can help you ensure that you will be as satisfied with your loan in ten years as you are when your loan is closed.