Mortgage Calculator Uses
Why Use a Home Loan Calculator
Home loan calculators are used for working out a number of useful things. The features and accuracy of a home loan calculator will vary from calculator to calculator but the following are some of the common uses:
Find out how much you can afford to borrow. Most people have an idea about how much they can comfortably afford to pay on monthly repayments. Using a home loan calculator, you can get an idea of your borrowing power quickly before you approach your lender or seriously start searching for a property.
Find out what your repayments will be for a certain loan amount and interest rate. A good home loan calculator will allow you to add enter variables such as recurring and one off fees also. This will give you a more accurate picture.
Compare Home Loans
You can compare a number of home loans on the market if you know their respective interest rates and fees. You can also compare home loans on the market with you own home loan if you are considering refinancing.
Compare rates & Fees (Advanced)
There are home loan calculators that not only calculate they also provide information such as interest rates and fees offered by a number of home loan lenders. Rather than enter rates and fees manually, these advanced tools automatically compare available home loan products by making use of an up-to-date live database of loan data.
Home loan calculators have various additional uses including:
Comparing “interest only” with “interest and principal” repayments.
The effect on repayments of extending or shortening the loan period.
Assessing the effect of lump sum payments or withdrawals