Guide To Using Financial Calculators

by David Jenyns on May 9, 2011

Exclusive calculators are available for calculating loans and mortgages. With a mortgage calculator you just have to feed in some numeric information to calculate mortgage payments as well as the amortization timetable. The calculator is simple and you don’t have to waste time in using complex equations or statements. There are two kinds of mortgage calculators; online and physical. The manual calculator is used by finance experts whereas the common man uses the online mortgage calculator. It should be borne in mind that mortgage calculations will only give approximate values and not a definite amount as interest rates change so often.

A mortgage calculator you can get figures of future interest costs, and any other extra payment that you would have to pay in order to complete the mortgage loan. With a good mortgage calculator, you can be aware of how much you have to pay and for how long. It is important that you maintain this calculation on a weekly or monthly basis based on your package plan so that you can maintain a proper budget. Most people tend to be completely ignorant of any calculations and when they are charged with any extra amount, they are caught off guard. When you are able to calculate payment correctly yourself, you can easily reconcile statements with your creditors and lenders and have an orderly record of each payment for future reference.

In order to calculate payments you need to provide the following input to the downpayment mortgage calculator.

Mortgage Amount

The initial calculations are done by deducting your down payment from the cost of the home. After this you are left with only the mortgage that has to be paid. People who have resorted to mortgage refinancing the value is the outstanding balance of the mortgage loans.

Mortgage Term

The mortgage term refers to the time of the mortgage, either a 15 year or a 30 year mortgage. Refinancing usually gives a 15 years term normally.

Interest Rate

The current interest rate of the Bank must be known to calculate your mortgage payments. Interest rates keep fluctuating, so make sure you know it exactly, as an accurate interest rate can help you get an accurate result.

Online mortgage calculator

There are special sites online that help people deal with mortgage calculations, either in full detail or just in basic calculations. Detailed calculations include the salary that you have, the term of the loan, the payment mode, the interest rate, tax rate, start date, close date, down payment etc. A manual calculator may be too complicated for you so it’s better that you hand over your calculations to online solutions to get a clear understanding of results. An efficient mortgage calculator lets you keep within your monthly budget and manage your overall finances as well.

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