Real estate calculators can help you understand more about mortgages and the amortization of mortgages. Use our real estate calculator to plan your mortgage or fill out our free short form to contact up to four lenders about your new home.

Using a real estate calculator will help you avoid negative amortization. Although uncommon, negative amortization is sometimes practiced by unethical lenders. Amortization is the repayment of a debt by making regulated installments. If your monthly payment is set too low to pay off your accruing interest, your debt does not decrease. Instead, it increases as your repayment period moves along. If your mortgage has negative amortization, as you pay more, you will owe more. Negative amortization is not likely to happen, but it could cause you to default on your loan, damaging your credit and possibly causing you to lose your home. A real estate calculator can be used to make sure that this does not occur with your mortgage.

If you are in the market for a new home, a real estate calculator may give you valuable information to use when making decisions about the mortgage you will need to finance such a large purchase. A real estate calculator will give you an estimated monthly payment, along with a schedule showing interest and principal payments. A calculator can also give you estimates on the amount of interest you will pay yearly and in total. Use our real estate calculator to explore mortgage terms or fill out our free short form to contact up to four lenders about your new mortgage.

Real estate calculators provide you with a table showing the breakdown of your monthly payments. A percentage will go to interest and the remainder will be put to the principal balance, or the original amount of the loan. The table shows that in the beginning of your repayment schedule, most of your monthly payment is paid to interest and a lesser amount to principal. Year by year the amount paid to interest will lessen until almost all of the payment is of your principal balance. It is important to understand how interest and your interest rate will effect your loan and a real estate calculator will help you gain a realistic perspective.