Plan Your Finances Better with a Mortgage Payoff Calculator
A mortgage payment calculator helps you create a mortgage payment and amortization schedule and aid timely payment. It saves you the hassle of complex calculations, which may go wrong if done manually.
All you need to do is enter some basic details to use it effectively. The details required include:
· Mortgage amounts:This is the difference between your down payment and the price of the home
·Tenure:The duration of the mortgage that you intend to take
· Interest rate:An estimate of the rate based on your location
· Monthly payments:Enter the date on which you plan to close the mortgage and the calculator will display the monthly payments you need to make starting immediately
Using a Mortgage Calculator
The most common use for a mortgage payoff calculator is estimating the payments you will need to make on your mortgage. It also gives you an amortization schedule to follow. The mortgage calculator may be used in other ways as well.
Help with closing a mortgage early:By the time you close your mortgage, you would have paid a significant amount extra as interest. To bring costs down, the mortgage calculator may be used to see how you may reduce the term of your loan. By using a calculator you will be able to understand how much more to add to your monthly payments in order to close the deal sooner. Hypothetical amounts may be added and calculations made to better understand the way forward.
Understanding the ARM risk: Adjustable-rate mortgage (ARM) is quite tempting as it promises lower rates of interest in the first few years but the rate will go up later. With a mortgage calculator, you will able to include ARM interest rate and understand whether you can afford the payment after the rate increases.
Getting rid of private mortgage insurance:As soon as you are able to hit that magic milestone of securing 20% equity in your home, you will be able to get the lender to waive off the mandatory private mortgage insurance. Use the calculator to figure out when you will reach that milestone and plan your finances accordingly.
The accuracy that a mortgage rate calculator provides is critical. Complex manual calculations may result in mistakes and throw off your financial planning. If you choose to close your mortgage early or add more to your monthly payments, the calculator will instantly show you a revised amortization schedule, facilitating better financial planning.
By using a mortgage calculator you will be able to make quick decisions and execute them with ease.
Try the free mortgage calculator on California Coast Credit Union’s website
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.