Mortgage Loan Payment Calculator
Calculate House Payments and Save
I'm frequently asked how to use a mortgage loan payment calculator. So in addition to teaching you how to calculate house payments, I'm offering you my best mortgage calculator for free. You can even print out your own amortization schedule.
On top of that, in the following article, I'll show you how to use this home mortgage calculator to save money. Can't wait a second longer? Jump straight to my mortgage calculator now.
Mortgage Payment Calculator - Fantastic Tool - How To Use It
What is a mortgage calculator? What does a mortgage loan payment calculator do? Why is a mortgage payment calculator different from a common calculator? How does a mortgage home calculator work? Who benefits from a mortgage amortization calculator?
Keep reading because by the end of this article I am going to reveal a secret that could save you more than $100,000.
Mortgage Basics - Principal And Interest
Here are the basics to consider about mortgage amortization.
In its simplest terms a mortgage is simply a loan secured by real estate. After the homeowner's last payment, a property is free of encumbrance.
Refinancing and home purchase mortgages are charged interest by the lending institution. Usually this interest is expressed as a percent such a 5% per year (annually).
Mortgage interest can be paid many different ways such as interest only payments in which the borrower pays only the interest but reduces none of the principal until a later date. Principal means the face amount of the home loan or the amount you still owe.
Why You Need A Mortgage Loan Payment Calculator
Most home mortgage loans in the United States are amortized. That is why mortgage applicants attempting to figure future payments with a common calculator get discouraged.
Amortization is simply a way of reducing a mortgage debt through monthly payments of principal and interest. That's why a mortgage loan payment calculator should actually be called an amortization calculator.
How To Calculate House Payments
A mortgage amortization calculator can tell you what your monthly payment will be if you know three things.
- You must know the term of the loan. Term refers to the period of time required to pay off the mortgage, for example 30 years, 15 years, or 40 years.
- Next you must know the annual interest rate required to borrow on your mortgage. This is sometimes called the nominal rate (named rate) and is the not the same as APR (annual percentage rate).
- Lastly you must know the principal or in plain language the amount of money you want to borrow.
If you know these three things you can solve for PI. "P" stands for principal and "I" stands for interest. PI is normally expressed as a monthly mortgage payment of principal and interest.
As long as you have at least 3 out of 4 factors (term, interest rate, principal, payment) you can solve for the remaining factor.
View And Print An Amortization Schedule
Some online mortgage home calculators allow you to also view and even print out an amortization schedule. An amortization schedule is simply a spread sheet showing monthly and/or annual payments. You can even see how much interest is being paid each month and the amount of principal you are paying down.
Here's My Secret About Mortgage Amortization
Did you recall my promise to share a secret with you? Here it is!
When you make your mortgage payment, it isn't divided up equally between principal and interest. In the beginning of the mortgage term, a home owner pays far more in interest. Only a minimal portion of the mortgage borrowed is reduced.
That is why borrowers feel disappointed when they look at their statements in the early years of the loan. But amortization used the right way can be beneficial.
By merely paying whatever extra you can afford on a monthly basis toward the loan, the balance can be significantly decreased. This process can knock years and even decades off the term of your home loan.
What you get in return can often mean an interest savings of hundreds of thousands of dollars.
If you enjoyed reading Mortgage Loan Payment Calculator - My Little Secret, you will like our Renting Versus Buying A Home also.
Prime Real Estate Articles Tip No.43
Home Mortgage Application | Manner In Which To Hold Title
There are customary ways of holding title to your home. It's an important issue because
- It pertains to your homeownership.
- It deals with inheritance issues in the event of death.
When we lived in California, I observed that most husbands and wives requested to hold title as Joint Tenants With Right Of Survivorship to avoid probate.
Tenancy In Common was a more customary request among unmarried borrowers to ensure inheritances could pass down to, in may cases, relatives.
However I have lived in states where it was customary for borrowers to simply input either "married" or "single" on the Uniform Residential Loan Application allowing the title company to designate the customary manner in which to hold title before closing.
There are numerous manners in which title can be held. If you have general questions about how to take title, talk with your home mortgage lender and/or a title representative. For specific concerns, consult an attorney.
It's just too important to let slide by and... no one is going to care more about it than you. After all, it's YOUR home!
Understanding Mortgage Applications
Take the guided tour with Kate's unique tips for filling out your home mortgage application...
Coborrower | Responsibility | Loan Type | Appraisal | Rates/Terms | Address/Units | Legal Description | Year Built | Purpose | Usage | Construction | Refinance | Title 1 | Title 2 | Fee Simple | Down Payment | Name | SS Number | Phone Number | DOB/Education | Address | Employment | Income | Housing Expense | Assets | Liabilities | Real Estate Schedule | Transaction Details | Declarations | Acknowledgement | Government Monitoring | Application Interview
Your bargain home decor begins here...
If this is your first year as a homeowner, you are probably looking for the ingenious ways to furnish and decorate your home while saving money at the same time.
Here is what I love about shopping at Amazon. You can take advantage of New Deals Every Day without running all over town.
This means less time spent at the gas pumps and more time to do what you love.
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A Gold Mine Of Homeownership Help From Ask Kate
How To Buy A House - Home Buyer Advice
Refinancing Your Mortgage - Home Refinancing Steps
Mortgage Help - Help For Homeowners
Roadmap At Prime Real Estate Articles
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