4 Home Loan Calculators That Can Help You a Lot

Buying a home is a hefty investment. Sometimes, even it is not possible to possible to come with the whole fund and need to opt for a mortgage loan for that. But before you apply for a home loan program, you need to know how much home you can qualify for. And none but a mortgage calculator can offer you a near-accurate answer to this question. It is an online tool that asks for some inputs from you and then helps you figure out a payment amount based on mortgage variables including mortgage type, length, interest rates and amount being financed. 

And as there are different types of mortgage calculators, you need to be familiar with their features, functionalities, and how to use them before you go online and use a home loan calculator Texas or in other areas. Most of the calculators are easy to easy while some even have the ability to input taxes, insurance, and other fesses. Here is a list of the calculators and how to use them. 

• Payment calculator 

Irrespective of whether you have a fixed or variable rate mortgage, this type of calculator will be the ideal choice for you when you want to know the payment amount. And for calculating it, all that you need to enter are the amount of the loan, the interest term, the length of the loan, and the interest rate. Most of these types of calculators will then let you know the expected payment amount, as well as annualize your mortgage balance. 

• Payoff calculators 

These types of calculators are specially designed to demonstrate how different payment schedules, as well as extra payments, will affect the mortgage payoff date and the interest that you will need to pay over the life of the loan. Do you want to pay equity faster and lower the amount that you pay in interest? Then, it will be the perfect calculator for you.

• Refinance calculator

Are you an existing homeowner? Are you contemplating refinancing to know whether it makes financial sense to do so? Then, use this calculator. It will show you things like whether refinancing from an ARM to a fixed-rate mortgage will be worth the cost. But before that, you will need to know what your current adjustable rate terms are, as well as what fixed rate you are likely to qualify for. With this calculator, you can easily understand whether a lower rate will offset the cost of refinancing.

• Payoff calculator

This calculator will show you how diverse payment schedules and extra payments will affect the mortgage payoff date along with the amount of interest that will be paid. It will be mainly perfect for the ones who want to build equity swiftly and lower the amount that they pay as interest over the life of the loan.

Along with the mentioned ones, you can also use mortgage comparison calculators, mortgage points calculators, second mortgage calculators, etc. So, go online, use different types of calculators and get the answer to your questions.

Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.