Home mortgage calculators (HMC) are used to help a current or potential home buyer determine how large and what type of mortgage he should apply for. The uses of mortgage calculators are varied and include comparing costs or interest rates among several different loans as well as determining the impact on the duration of the mortgage by making additional principal payments during the life of the loan. A mortgage calculator is an automated tool that allows the user to quickly and easily determine the financial implications of changes in one or more aspects of the loan agreement. These major variables include: • loan principal balance
• periodic interest rate compound interest
• number of payments per year
• total number of payments
• regular payment amount

Determining Your Mortgage Rates

When purchasing a new home, most buyers need to finance a portion of the purchase price with a mortgage loan. Prior to the availability of mortgage calculators, if a home buyer wanted to understand the financial implications of changes to these five main variables in a mortgage transaction, he needed to use compound interest rate tables. These complicated tables required a working understanding of advanced compound interest mathematics. By using our online mortgage calculator, the answers to questions regarding the impact of changes in mortgage variables become easily and quickly available to everyone.

You should use our online mortgage calculator to see how much property you can afford. When you enter some simple information, it will compare your total monthly income with your total monthly debt load. A mortgage calculator can help you determine your total income sources as compared to your monthly debt payments. It will also determine potential mortgage payments in addition to property taxes, homeownership dues and other fixed costs. You will also be able to examine different loan sizes and interest rates. Normally, lenders want to see all of your debt payments, including property expense, to be not more than about forty percent of your total monthly pre-tax income.

Loan Calculations

The fixed monthly payment for a fixed rate mortgage is the amount paid monthly by the borrower to ensure that the loan is paid off in full, with interest, by the end of its term. This monthly payment c depends upon the monthly interest rate r (expressed as a fraction, not a percentage, i.e. divide the quoted yearly percentage rate by 100 and by 12 to obtain the monthly interest rate), the number of monthly payments N called the loan's term, and the amount borrowed P known as the loan's principal; c is given by the formula.



This monthly payment formula is easy to derive, with the derivation showing how fixed-rate mortgage loans work. The amount owed on the loan at the end of every month equals the amount owed from the previous month, plus the interest on this amount, minus the fixed amount paid every month.

You can take the mystery out of purchasing a new home or refinancing your present one by using our on-line home mortgage rate calculator. You can quickly and easily learn which home financing or refinancing option is right for you. Learn how the financing process works and determine if it is in your best interest to take out a new mortgage or refinance your present one.

Fill out our free contact form right now, and discover how you can earn passive income while securing your mortgage today.