The purpose of using a mortgage loan calculator is to offer a quick, easy way for potential buyers to try out different combinations of factors to determine the mortgage that will suit their budget.
Top Mortgage Calculators
With any type of mortgage calculator, look for the option to change as many variables as possible. This will allow the user to determine the best term duration, payment amount, loan amount and interest rate.
There are several different types of mortgage loan calculator. Regardless of the type, from purchase amounts to refinance options or comparing 15 year fixed to 30 year fixed loans, taking the time to enter the data for a different option is time well spent. All-too-often home buyers assume that the lowest interest rate is always the best option, but it may not be based on the other three variables and the given financial factors unique to the buyer.
What to Consider
One of the most important things to remember is that the loan amount you’re approved for and what you can realistically afford may be two very different numbers. Don’t assume that the mortgage amount offered is in the price range where you should be looking for homes.
Enter in a reasonable estimate of your down payment, the term of the loan you’d like to acquire, and the price of the home you are considering. The calculator will give you an approximation of the loan you will be offered based on the price of the home minus the down payment over the term you have provided.
Try changing different variables–particularly the house price and down payment, as well as the term—to see how increases and decreases in these numbers will affect your loan calculation.
The information provided by the mortgage loan calculator will give you a range of possible options. Remember, there will be other costs of living and other issues that may not be reflected in the variables on the calculator that will also need to be taken into consideration.
To get a good estimate of your loan options, try out the mortgage loan calculator offered at Guaranteed Rate. For more specific information, fill out our online application at website and talk to one of our loan experts.
