When it comes to mortgages, there are so many different variables that come into play, it’s sometimes hard to know what your payments will be.
A mortgage calculator can save you a lot of money
Even if you already have a mortgage, you might want to gauge how quickly you could repay your mortgage if you increased your payments to a certain amount or the amount you would have to pay each month to repay your mortgage within a certain about out time.
You don’t have to be a mortgage expert to do these calculations. Using a mortgage calculator you can input information about your mortgage and the variable you want to change and find out numbers you are looking for.
Types of Mortgage Calculators
A mortgage loan payment calculator calculates the amount of your monthly payment based on the amount of the loan, the interest rate, points charged by the lender, cost of the loan, and the length of the loan.
By adjusting these factors in the mortgage calculator, you can estimate how your monthly payments will change. For example, if you are unsure of your interest rate, you can test various interest rates to see how your monthly payment will be affected.
Another scenario you can test using a mortgage calculator is how your monthly payment will change if shorten or lengthen the amount of the loan.
Some mortgage calculators allow you to test the amount you can afford to pay for a mortgage.
Into the mortgage calculator you enter your income information, the amount of down payment you would like to pay, debt information, and loan information. The mortgage calculator will return to you the amount you should qualify. The calculator also gives you the monthly payment and tax information for the mortgage you are qualified for.
Finding a Mortgage Calculator
Locating a mortgage calculator isn’t difficult at all. You can easily find one by entering the phrase “mortgage calculator” into a search engine.
The search engine will return several results of websites to you. Look at the different calculators and play around with the functionality offered.
Bankrate.com offers a mortgage calculator that is fairly easy to use. You can find the calculator by visiting the website and typing “mortgage calculator” in the search box.
In the calculator, enter your mortgage information and monthly payments, and then click the “Show/Recalculate Amortization Table” button. You will be shown a table listing your payments for the length of your loan, along with the principal and interest with that payment and the balance of your loan.
Using Bankrate’s mortgage calculator, you can also calculate the affects of adding extra money to your monthly payment, adding a lump sum annual payment, or a one-time payment during a specific month and year. When you recalculate the amortization table you can see the effect of the payments on your mortgage.
A mortgage calculator is a good way to play with factors associated with your mortgage and see the effect those factors have on your monthly payment and total payoff. If you have a mortgage, or you are thinking about getting one, a mortgage calculator will be of assistance to you
Watch the video related to mortgage calculator
www.BridgeCapitalLending.com Use an hp 10B to calculate amortizing mortgage payments
Help answer the question about mortgage calculator
mortgage calculator?I am interested in learning about calculating a monthly mortgage payment without being harrassed by loan companies. How do I figure out how much I can borrow? I know that I use the current rates I see listed in the newspaper, but is there a formula that banks use?
This is a little more complex then this simple maths. Depending upon your tax bracket, savings in taxes due to interest exemption, property appreciation rates in your local area ( historically they have been 5% nationwide) and the future value of 401k in the time frame you are looking it will determine if you are making the right choice.
In my experience it is beneficial to keep the 401k and pay the mortgage, it also keeps liquidity for short term if needed.
Look into a full investment plan to reach your goals.
You're going to save about $110,000 over the course of the loan. Just make sure you look at other options before you take 90K out of your pocket, in case there's a better opportunity somewhere.
Not realistic. First, you'll never get a 5% interest rate, and you won't get 100% financing on an apartment.
More importantly, you can't afford it. Your debt ratio is too high. You won't be able to qualify for a loan with a total debt ratio above 50% or so, if your credit is perfect.
You'll need about 10% down payment, plus another $6,000 or so in closing costs. Other monthly expenses include utilities, food, telephone, internet, cable TV, parking, gas, etc. You could probably save money if you got a roomate.
Sounds like you should reconsider living with your parents until you are in a better financial position to move out.
Good luck.
Where can I get the 2nd part to this video? I cant find it or the excel download on the site.
Thanks
Thanks Bro, You are great teacher. I wish I had you as my good teacher before. Again, thank you very much!!
What a bunch of crap. Anyone giving Overture/Yahoo pay per clikc money is throwing it out the window. It is so out of control over there. My account is offline since I learned of these kinds of practices. I am MAD and I am feeling ripped off.
If I buy a product I expect to know what I am getting. If you are not careful with Overture/Yahoo you get promoted in these ways. I recommend you go back to a system of exact matching and NEVER let Yahoo! blanket match or content match for you, it's insane!
To go a step further, Yahoo! has forsaken its roots as a search engine. I love their software but their core was search engine. I have many entries in the directory, it used to be this was a good thing. They cost me 300/yr. Noe for this about one would expect some value in the search results of their web results especially when their web results have no good answers. You value as a URL in their directory buys you NOTHING. It is completely outragious because it used to hailed as the best hand editied reference and now is blown away with web results in its place that are often POOR results.
If you're listening NEO (YAHOO!) your network is crashing and you need to stop bleeding the pay-per-click world for you mistakes. Go back to your roots, learn from your mistakes. Oh yeah, continue to make the software, I like the messenger but not the widget engine.
I better get best response for this!
I'd vote for the student loan. It is the higher interest rate. Once it is paid off, you can then free up the money that had been paying it and send that against the mortgage to pay it off years earlier or stuff it in a savings account each month if that is the goal.
many thanks for the video, it helps me a lot. I didn’t know about the PMT function before.
33% of your monthly NET income is the high end of what you could afford as a payment to a lender.
if you take home 1000 a month, then your mortgage payment would be 333 dollars.
you do not "tell" others what YOU can afford. they will figure out WHAT they will lend you based on your income, time on job, credit payment history, etc.
Find a calculator that produces an amortization table. For each principle payment you make in advance, you save the interest on that payment because it moves you forward in the amortization table. Check off the extra principle payments you intend to make, then add the interest saving in the interest column. The sum is what you'll save. There is not general forula for what you are doing, because you wil be selecting payments as you can afford the extra payment.
The best time to do this would have been at the beginning. As time goes on, more is applied to principle and less to interest. Your savings are much less that if you had started this from the beginning.
If you do send in an extras payment, I suggest that you send it in a separate check marked "Apply to Principle" or the bastards won;t apply it correctly and you won't get the saving.
The easiest way to get a table is to use the tempate built into Excel.
For an online schedule maker see http://www.myamortizationchart.com/
By the way, you do not have to follow the amortization schedule. Ask your lender if you can send in an additional fixed amount, say $100 every month. If you do that, it is possible to compute a new amortization with extra fixed payment.
At payment 120, the table looks like this:
Principle Interest Balance
———————————-
$216.26 $503.20 $100,422.87
————————————
So if you paid the 216.26 as extra, you save $503.20 since you never have to pay it.
Here's the next two years:
Pmt# Prin…..Interest … Balance
—————————————–
121 $217.35 $502.11 $100,205.52
122 $218.43 $501.03 $99,987.09
123 $219.53 $499.94 $99,767.57
124 $220.62 $498.84 $99,546.94
125 $221.73 $497.73 $99,325.22
126 $222.83 $496.63 $99,102.38
127 $223.95 $495.51 $98,878.43
128 $225.07 $494.39 $98,653.37
129 $226.19 $493.27 $98,427.17
130 $227.32 $492.14 $98,199.85
131 $228.46 $491.00 $97,971.39
132 $229.60 $489.86 $97,741.78
133 $230.75 $488.71 $97,511.03
134 $231.91 $487.56 $97,279.12
135 $233.07 $486.40 $97,046.06
136 $234.23 $485.23 $96,811.83
137 $235.40 $484.06 $96,576.43
138 $236.58 $482.88 $96,339.85
139 $237.76 $481.70 $96,102.09
140 $238.95 $480.51 $95,863.14
141 $240.14 $479.32 $95,622.99
142 $241.35 $478.11 $95,381.65
143 $242.55 $476.91 $95,139.09
144 $243.77 $475.70 $94,895.33
145 $244.98 $474.48 $94,650.35
Your thinking is a little bit off.
If you have a 400, 000 mortgage for 30 years and you are paying 2528.27 per month..THAT means that you are BORROWING at 6.5%
Now, with the same borrowed amount, you want your payments to be $2000 per month..THAT means you have to find someone who is willing to lend you the $400,000 at 4.5%!!!..so in your mortgage calculator, just play with the interest rates…
OK..so you find you cant get 400,000 at 4.5%, but you still want to pay 2000 per month…lets say your best rate you can get is 6.5%
OK so now you know you will have to start playing with the MAXIMUM amount you can borrow….
in my mortgage calculator I found that if you borrow 318,000 at 6.5% for 30 years, your monthly payments will be 2009.98
.
So what does that tell you..YOU need to start looking looking at cheaper houses. You can only afford to borrow 318,000
with your criteria, not 400,000
I have an FHA loan which I got in 2005. I live in the bay area, California (homes are expensive here – not sure how Colorado compares).
The upsides were:
- I bought with no money down (I had similar income to yours and 720 credit score)
- They even covered closing costs, so my loans (total of 3) came to 103% of the purchase price
- The rate I got at the time was unbelievable (4.75% 30 year fixed, I think now they are at somewhere around 5.75% but I could be wrong)
- It is a fixed rate for 30 years, no worrying
- I was/still am not required to make any payments on the 2nd and third loan.
The downsides were:
- You have to pay PMI (private mortgage insurance) no matter what for the first 2 years, after which you might be able to get it removed if your home's value rises and fits certain criteria. This part is really irritating because (in my case) it is about $220/mo that I am basically throwing away for the priviledge of having this loan.
- You must live in the home for the life of the loan (you are not allowed to rent it out for any reason)
The rate difference between then and now is quite substantial. If I was in your shoes, buying now with no down payment I think I would:
- buy a home with CAL FHA (their rates aren't THAT much better than rates you can get elsewhere, but it's nearly impossible to find 100% loans elsewhere these days)
- they have no prepayment penalty (I think – please check on this as it's been a while for me) so you can refinance if you need to
- you can buy with no money down which is nearly impossible to do otherwise these days
- I would ONLY do this if I was buying a foreclosure or a short sale in a GOOD area in your state (a place more likely to weather the housing crisis right now) where I would be walking in with equity. Make SURE your agent gives you comparable RECENT sales of same size/same lot properties, you want to have equity on day one, in case values come down.
- I would ONLY do this if I wanted a *home* as opposed to a get rich quick scheme. You could be in this home for the long haul before prices stabilize and we start seeing growth again. If you walk in with equity there's less/little risk that your value goes down and you get stuck owing more than the home is worth, BUT keep in mind that it will be difficult to sell your home because everyone is having a harder time getting loans, and that means less people can buy. So you need to think long term.
I do think it is a good idea to buy right now with no money down because prices are low, and if you can get a good deal and a good loan that you are confident you can maintain for years (think 5 years) then you will come out ahead in the long run.
Note that if you did have a down payment, I would have suggested to explore other loans, because the PMI is money down the drain, and if this is your first home and you're single with no kids then it's unlikely you'll be living in it for 30 years anyway. But (not knowing anything about the Colorado market) my opinion is that going with CAL HFA in your situation is a great choice.
(And if I can be annoying for a minute and suggest about something you didn't ask — don't fall into the temptation of leasing a car or buying a brand new car with payments … really bad way to spend your money with no appreciation whatsoever! You'll do much better to buy a used car and get yourself into a home. I see so many people buying $30K-$40K cars with payments, it's killing me!)