Making the right decision when it comes to your mortgage is definitely a must. You can never be too careful, so double checking and recalculating mortgage deals being offered to you may be the best way to go. Luckily, you can now make the calculation a lot simpler by using available online mortgage calculators to help you. Whether you need a simple BankRate calculator, refinance calculator, or mortgage payoff calculator, you can easily find the right tools to help you figure out the numbers online.
To make the most out of available mortgage calculators, you must first understand how to use them. A good mortgage calculator usually has four basic fields. The first field is home value or house sale price; this is where you type in the amount of money your favorite house is on sale for. Next, we have the percentage down field, also known as the down payment percentage field. You usually have to pay mortgage points calculator 20% down payment on your mortgage, but some mortgage lenders do allow you to use Private Mortgage Insurance to enable you to pay less than 20% down payment. The third field is the length of mortgage or the timeframe. Last but not least, you would also have to input the interest rate you receive from the mortgage lender.
By filling out the required information properly, you will gain access to detailed calculation result. Remember that a good mortgage calculator considers every aspect of the mortgage, so you should see three basic calculation results. The first on is the gross monthly payment, calculated from the amount of house price, down payment percentage, interest rate, and mortgage length.
After this basic calculation result, the calculator will see if your down payment is lower than 20% and add PMI accordingly to the monthly payment; this is your second calculation result. Last but not least, there is also a residential tax that needs to be included with the monthly payment. The mortgage calculator will then add the amount of residential tax and present you with the third and final mortgage payment calculation result.