Having agreed on a monthly payment schedule with your mortgage lender doesn’t necessarily set that amount in stone – that’s just the minimum you can pay! By playing with a mortgage calculator, particularly a pre-payment loan calculator, you can see where extra payments can make long-term savings on your mortgage.
The mortgage calculator will quickly show that you don’t have to pay large sums of additional cash in order to make a difference. Even regular smaller sums can greatly reduce the length of time you are paying your mortgage. They will even reduce the amount of interest you would be paying. Imagine that the mortgage you thought would be with you until you were 50 can be painlessly paid off by the time you are in your mid 40s! That’s strong motivation to try out the appropriate mortgage calculators to see what kind of financial additional payments you need to make this achievement.
The first thing you need is to use a home budget calculator to check your current financial situation. How much disposable income do you have each month? Where does this go currently? Could you comfortably commit an additional $50 a month, for example, to your mortgage? Put that figure into the mortgage calculator and see what difference it would make to your long-term mortgage picture.
It can get addictive to try and shave off more of your disposable income and put the increased amount into the mortgage calculator, but beware of over-stretching your finances. While it’s exciting to see how much faster you could pay off your mortgage, and so fast to see the results that the pre-payment mortgage calculator gives you, it’s also easy to get carried away and forget that you need to keep finances in hand for other things!
One of the best things you can do is to find a minimum additional monthly payment that you can make without creating too much of a problem – perhaps by canceling subscriptions you don’t use, or by cutting out one trip to a well-known coffeehouse each week. Use the mortgage calculator to work out the difference this makes to your mortgage principal. This is the least impact you will make on your mortgage.
Next try and save an additional sum in a separate banking account and try not to touch this. If you haven’t had any emergencies requiring the money during the year, withdraw it after 12 months and make a single extra additional larger sum payment against the capital (still making that basic monthly payment in the same month!) and then use your mortgage calculator to see how much difference this has made. This way you can keep that money handy and still reduce your mortgage. But it will not reduce your interest as much as paying out monthly. Be sure to check out all these variables on the mortgage calculator.
A mortgage for your home is a long-term commitment, but using a mortgage calculator you can see how it’s possible to reduce the time period with additional small monthly payments. Paying off your mortgage quicker, and paying less interest, without financially hurting yourself – isn’t that worth exploring further?
Watch the video related to mortgage calculator
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Help answer the question about mortgage calculator
Where can I find a mortgage calculator that can determine how many years it will take to pay our loan back?…if we enter the interest rate, loan amount and how much we pay each month. I know it will be paid off early, but I want a more specific time frame.
Thanks!
you can find it in tools on this website
http://www.realestate.com.au
hope this helps
I found this mortgage calculator a few months ago. You can even download their mortgage calculator to your desktop. check it out.
Input your data to calculate your mortgage in Malaysian context.
Don't use a mortgage calculator and don't listen to people on YA, go see a lender and get qualified by a professional that knows what they are doing.
Edit:
Using 3 times your income to determine your eligibility is ridiculous. It does not work. A person that makes $12,000 / year cannot qualify for a $36,000 house and a person that makes $250,000/ year can qualify for more than a $750,000 house. Someone who makes $1000 a month and has 50% of their in some used on a mortgage has $500 left and that's unlivable. A person that makes $20,000 a month and uses 50% of their income has $10,000 a month, that's a big difference!
As I said, speak to a loan officer who knows what they are doing.
Thanks Bro, You are great teacher. I wish I had you as my good teacher before. Again, thank you very much!!
Where can I get the 2nd part to this video? I cant find it or the excel download on the site.
Thanks
I like the calculators on http://www.bankrate.com, but they will not do a search on taxes for you by zip code – there are too many variables for that. If you have a particular property you like often the real estate listing will tell you the taxes for that property, which you could just add on to the mortgage amount. Or else, get the tax rate per $1,000 for the area you want to live in, and use that to bump up the effective cost. For example, if in your area, taxes are $2 per $1,000, and you want to buy a $200,000 house, calculate your mortgage on $200,000 plus an extra payment of $40/month.
Theres one here
http://www.hotels-accommodation-europe.co.uk/mortgages.php
View the source code and look for the javascript file that powers it.
For calculators on mortgages, try bankrate.com
They have all kinds of calculators and information, including info on how to figure out when it is worth refinancing.
(does "2 yrs left to go" refers to when you don't have to pay a penalty? If you have many years to go on your mortgage, consider getting a fixed rate if you think interest rates may go up in the future…)
You can even comparison shop for mortgages on bankrate.com.
many thanks for the video, it helps me a lot. I didn’t know about the PMT function before.
You may want to download free OpenOffice, which includes spreadsheet totally compatible with Microsoft Excel.
http://www.openoffice.org/ (version for Windows and version for Linux both are available to download).
There is a plenty of formulas and even macros suitable for any needs. Some macro could be downloaded from web sites of sharks.
The best solution could be also to not taking any loan at all. Saving account with 4.5% per annum, monthly payments and compound interest is your friend!!! In this way, bank gonna pay you, not vice versa. You cannot get loan with 4.5% interest, right?
So, it can get you your home in not so long time and sets you free. Your heart will be filled with joy and your kids will be grateful to you for not having any debts and financial obligations.
go to realtor.com it has a great mortgage calculator