A mortgage rate calculator takes the interest rate, mortgage term, and principal balance of a loan in order to produce an estimated monthly payment. A mortgage rate calculator may also give the amount of interest accruing on the loan. The amount of interest can be given as a monthly average, a yearly average or a in a total of interest accrued over the life of the loan. Many calculators give a detailed table of the changes in interest and principal as the repayment period progresses, which aids borrowers in future financial planning.
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Mortgage rate calculators may also allow you to plug in one or more extra payments through out the life of the loan or yearly. This allows you to plan a way to cut down on interest even if you can not afford a larger down payment or higher monthly payment. If you plan on making extra payments, make sure to consult your lender about prepayment penalties so that you will not incur a fine while trying to save money.
Mortgage Rate Calculator show the effect the following components of a loan
have on your mortgage:
- interest rates
- mortgage terms
- principal balance
- extra yearly payments
Low interest rates have encouraged many renters to look into buying a new home, and created a great opportunity for homeowners to refinance. There are many ways to ensure that your new mortgage closes in your favor. Researching your mortgage is good way to make sure you will be happy with your mortgage. Checking your credit can give you a realistic idea of what kind of loan you qualify for. Credit reports can be ordered for a nominal price from any one of the three major credit agencies, for example, Equifax, and can even be ordered online. After looking into your credit history and current income to discover the kind of loan you qualify for, researching your mortgage is your next step. A mortgage rate calculator can be used to help you decide on the kind of loan you want, making it easier to make choices between different loan offers. Use our mortgage rate calculator or contact up to four lenders by filling out our free short form.