Mortgage calculators are pivotal factors when you’re
looking for the right mortgage that best suits your home buying needs. Below is a
short list of mortgage calculators to help you make your financial decision.
APR Mortgage
Calculator
An APR
mortgage calculator helps you calculate and compare the APRs or Annual Percentage Rates of
different types of mortgage loans. To use an APR mortgage calculator, you need to fill in the loan amount and
the quoted interest rate. Say for example, you take in a 30-year loan for $20,000 at 4.5% interest rate.
Percentage of discount points is 2.0% with a closing fee of $1,000. When you calculate this using the APR
mortgage calculator, you’ll find that the annual interest rate of this loan is 5.5275%.
ARM vs. Fixed Mortgage
Calculator
Different financial
situations require different types of mortgage. An adjustable rate mortgage is good when the loan term that you
want is short. On the other hand, fixed rate mortgages might give you the certainty that
you need when it looks like interest rates are rising. Use ARM vs. fixed rate mortgage calculators to find out
which mortgage suits you. An ARM vs. fixed rate mortgage calculator would require you to fill in the details
both mortgages. Once done, the mortgage calculator will help you determine how much you can save with either
mortgage types.
For example, you
decide to take out a loan of $105,000 payable in 30 years. The fixed rate mortgage interest rate is 7.5% while
the ARM interest rate is 4% with an adjustable period of one year. Maximum cap period of the ARM loan is 0.5%
while the lifetime cap is 4%. Once you put in these details into the mortgage calculator, you can start
estimating your savings on each mortgage. The mortgage calculator will show you that with a fixed rate loan, you
will be paying $734.18 monthly and no savings. On the one hand, the mortgage calculator will also show you that
ARM loan will have you paying up to $663.67 monthly with cumulative savings up to $11,024.46.
Comparison Mortgage
Calculators
As the name itself
suggests, this mortgage calculator allows you to compare several mortgage types and find out what suits you
best. You can put in variables to as much as four loans into this mortgage calculator and start comparing
prices. By providing the number of payments to be made, interest rates, and principal amount, this mortgage
calculator will calculate for you the projected monthly payment.
30 Year and 15 Year Mortgage
Calculator
This mortgage
calculator will help you decide which mortgage suits your needs – 30 year or a 15 year term. For instance,
you’re considering a $100,000 loan. For 15 years, the interest rate is 6.250%. For a 30-year term, the interest
will increase slightly to 6.500%. Discount points for each are equal at 1%.
For more accurate results on
this mortgage calculator, let’s put in a state/federal tax rate of 38%, property tax amount of $2,000,
homeowner’s insurance of $600, and savings rate of 4%. The purchase price of the home is $125,000. The result
generated by the mortgage calculator will be a total payment of $1,074 for the 15-year term and $849 for the
30-year term.
