A calculator for Mortgage Mishaps

Did you know that you can use a calculator to process your mortgage payments? Well, now you do. A calculator can make financial decisions easier on you especially if you have to juggle with different types of mortgage rates on a regular basis. When it comes to mortgages, one size doesn’t fit all. This is why you will never find a calculator that allows you to plan your monthly or biweekly payments and the amount that you will have to pay for the initial purchase all in one go. So without further ado, let’s see how a calculator can blow your financial troubles away online

Types of Financial Calculators and why they matter

A calculator to Qualify you for a Mortgages

As discussed, a calculator will make it easier for you to keep tabs on your payments and your income. A calculator is sure to come in handy if you opt for a fixed rate mortgage. Such mortgages require certain information like student loans, credit card debts, gross income and any other monthly debt payments before you can qualify for them.

Once you have inputted the pertinent information into this particular type of calculator, it will come up with a debt top income ratio which you can use to figure out whether you qualify for a mortgage loan. A calculator such as this one will definitely cut your legwork by half.

A calculator for Refinanced Mortgages

Refinancing a home means paying off an existing mortgage and creating a new one. Potential homeowners who are considering refinancing their mortgages should opt for a calculator that will let them know what they are in for. Homeowners can also combine their primary and secondary mortgages in the refinancing process.

Since your home will be your single most valuable investment, it pays to be careful about refinancing it. A homeowner has to keep various factors in mind before making the decision. Some of them involve how interest rates will rise or fall, would it be better to switch to a different type of mortgage or whether your credit score will allow you to apply for a lower mortgage rate. A calculator will help you decide.

A calculator to Pay off Debt

Some homeowners use their home loans to pay off outstanding debts. A calculator will help you decide whether this is the best course of action for you. In other words, a calculator like this will help you consolidate your debts. All you have to do is enter your current credit card balance, any outstanding amount on your home loan and any additional debt to figure out where your financial situation stands. A calculator like this will help you come up with a payment plan that fits your budget.

A calculator for Bi-Weekly Payments

Speaking of payments, a calculator that helps you process loan amounts will be sure to come in handy especially when it comes to negotiating with lenders. For example, a calculator such as this will help you choose between a bi-weekly and standard mortgage. Most mortgage holders opt for bi-weekly payments since this saves them a lot in compounding interest. A calculator that computes monthly payments will help you get started.

A calculator for Fixed Rates

If you opt for a calculator that helps you calculate the amount of a fixed rate mortgage, chances are that you are planning to stay at your home for a long while. Fixed rate mortgages do not change for 20 to 30 years. In order to calculate a fixed rate mortgage a homeowner will have to input the interest rate, the price of the home, the tax amount and the length of the monthly loans.

A calculator for an FHA Mortgage Loan

Government backed loans are a preferred option for people who are looking for higher loan limits, low down payments and lower home prices. In general, FHA loans are mortgage loans that are issued by the Federal Housing Administration.

A calculator that helps you calculate FHA loans will help you acquire an estimate of the closing costs and down payment that will be required. A calculator such as this will help you calculate the limit for an initial purchase.

A calculator for your Savings

A fluctuating economy can cause a major rift between your finances and your mortgage payments. This isn’t to mention the taxes that you will come across. Fortunately, there are online financial calculators that that will help you take inventory of your budget and give you the chance to come up with a plan of action.

A calculator for Closing Costs

Did you know that you might also have to pay closing costs for your mortgage? The fee might be hidden by a higher interest rate but you are paying it nonetheless. A mortgage loan calculator will help you compare loans. Use a calculator that is designed to compute APR (Annual Percentage Rate).

A calculator to Borrow

How much should you borrow for a mortgage? A calculator for monthly payments will help you determine whether your income can handle them. Remember, lenders will not entertain you if they find out that your finances will not be able to cover the payments.

A calculator for Balloon Mortgages

The interest rate on a balloon mortgage is fixed for a certain period of time. The principle amount will not be amortized. This can result in lower initial payments and can prove beneficial in the long run if a mortgage seller plans on selling it in a hot market before the balloon. However, there is no telling what the new rates will be like. Use a calculator to compute how the rates fluctuate in the housing market and prevent yourself from going into debt before the balloon is due.

Remember, a calculator that helps you process your mortgage and financial situation in one go is a far better prospect than going blind into a turbulent housing market. A calculator will empower you to make smarter financial decisions that will save you thousands of dollars during the course of your loan.

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Blog May 21, 2013 admin No Comment(s)

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