Mortgage Calculators: How to Use Them? Its duties?
Before contracting a mortgage, it is important to calculate the approximate installment that results from the interest rates, financing amounts and terms in each bank.
To do it in a simple way, there are mortgage calculators that allow you to obtain the result in a few seconds, just by entering the mentioned parameters.
Let’s see in the following article how to use mortgage calculators and what functions they offer.
How to use a mortgage calculator?
Mortgage calculators are digital tools with which you can easily and quickly obtain the approximate result of the installment that must be paid on a mortgage at a certain interest rate.
These platforms make comparing conditions between different mortgages easier, allowing the user to contract the mortgage that best suits their financing needs.
In fact, ease of use is one of the main features that a good mortgage calculator should have, avoiding unnecessary, messy or difficult to understand data.
By using this tool, the estimated fee that must be paid is obtained according to the data provided, which allows obtaining different results in a few minutes, just by changing the simulation parameters.
So to use a mortgage calculator it is not necessary to complicate, it is enough to enter the basic data involved in a fixed rate mortgage:
- Housing prices.
- Initial payment (expressed in amount of money or percentage).
- Amount of the loan to request.
- Annual interest rate.
- Term of the mortgage.
Mortgage Calculator Features
Calculating the monthly payment of a fixed rate mortgage is usually the most common search for users, but not the only one. Therefore, the platform must be complete and offer users different options according to what they need to know.
An example is MortgageCalculators.info, an intuitive and easy-to-use platform that offers the following features:
They are the most sought after by those who seek the best conditions for paying their mortgage:
- Monthly Payment Calculator: It is the simplest and uses the aforementioned parameters to calculate the monthly payment of a fixed rate mortgage. This result does not include the PNI or property taxes, as they differ by state.
- Minimum income requirement: It is used to calculate how much the monthly income of a user should be who aspires to a house of a certain value and under certain conditions.
- Mortgage loan limit: The amount of money approved for a mortgage depends on several factors, including the applicant’s gross income, DTI ratio limits, and debts already owed. Therefore, this calculator is ideal for those who want to know how much their debt capacity is and request an amount that can be approved.
DTI: This calculator is very practical as it allows you to easily see the relationship between debt and income.
MortgageCalculators.info also offers the Advanced Mortgage Calculator, a feature-rich tool that requires more accurate data such as property tax, HOA fees, homeowner’s insurance, and PMI. With these parameters, the user can see details about:
- Pay tables.
- Summary of the mortgage.
- Biweekly savings.
- Loan breakdown charts.
- Private mortgage insurance.
- Annual amortization tables, among other outputs.
But this is not all! The following calculations can also be performed:
Calculators to save money:
- Rent or buy?
- Credit amortization.
- Extra payments.
Home loan options:
- Points, closing costs and actual fees.
- Adjustable rate loans.
- Government-backed mortgage loans.
- Second mortgages.
Real estate investments and property sellers:
- Sell a house.
- Purchase of investment properties.
- Reverse mortgages.
Finally, in MortgageCalculators.info you will find the fixed mortgage rates updated month by month, so it is not necessary to leave the platform to investigate the rates of the different providers in the country separately, all the information to perform the calculation is available one click.
According to reports from Freddie Mac, mortgage rates are at record lows, while Treasury bonds have moved higher. This economic phenomenon encourages competition between financial institutions and real estate companies, so that customers can access better payment conditions.
At this point, it is convenient to use the mortgage calculators, since you can compare the conditions of different companies in a few minutes in order to choose the one that best suits your financing needs, and at the same time project me the monthly budget.
In fact, according to CNBC specialists, one of the most efficient ways to save money when taking out a mortgage is by comparing the costs of different entities, and not just getting carried away by the first offer.
Hence, tools such as MortgageCalculators.info and similar platforms are so useful for people who want to take out a mortgage.