How to Calculate Your Mortgage Repayments
Why try to do the complicated figuring that is required when you are trying to refinance your mortgage on paper when you can use web tools to do it for you? There mortgage payment calculators available for free on the internet that you can use to see how all the relevant costs and sums will add up within a thirty-year refinance loan term. These kinds of tools provide the accuracy that you need to determine if you can really afford to refinance your mortgage now or if it would be better to wait until a later date.
Having access to a web-based mortgage calculator is taken for granted these day when only a decade and half ago you would have visited a qualified accountant or a mortgage specialist to have your mortgage rate calculated. You as a borrower had no real information about the sort of costs that were involved for future payments on a home loan or a refinance. The loan period terms should be clearly explained compared to the the particular mortgage interest rate.
Now the borrower is at an advantage because they have access to the same tools that are used by lenders to calculate a specific mortgage rate. When they approach a lender for a loan, there is not so much guesswork or assumption on the borrower’s part.
Finding a detailed explanation of your mortgage costs should be a very good reason to use a repayment calculator. In a matter of minutes, you will be able to determine if you can afford a mortgage without much effort. You will save yourself from a useless visit to a lender to make inquiries and find out you cannot get a mortgage that way.
The following information should be provided when using an online mortgage repayment calculator:
Monthly payment based on the home’s selling price. Interest rates. Downpayment percentage.
To use a mortgage calculator you will be required to put in specific information like he sale price of the home, the percentage of the downpayment, the length of the mortgage, as well as the annual percentage rate. With this information inserted you can click a button to have everything explained in more detail and then hit a calculation button to get the mortgage rate.
Going down the mortgage calculator route should provide you with the information as to whether you can afford your loan. Having a larger downpayment of 20% can dramatically reduce the total mortgage amount payable. You can refer to a mortgage calculator to get information on the month number, interest paid, principal paid, and the remaining balance from year one to the present year so that you have everything you need.
Use a mortgage calculator to evaluate your costs to save time and effort rather than simply wondering how much the whole mortgage will cost.
Watch the video related to refinance rate calculator
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Help answer the question about refinance rate calculator
Should I refinance my house?We bought our house in May 2008, we currently have a rate of 5.75% on $360K mortgage for 30 years, the house value is probably around $410K. My wife and I are thinnking of refinancing to a lower rate which may save us about $350 a month on the mortgage. And I think we would have to buy 1point to lower the rate to 4.87% – 5%. Term would be for 30 years. I've been playing with the refi calculators online and closing cost would be $10K. what do you think?
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Tags: Acceleration, Amortization, Bi, Calculator, Cancellation, information, interest, mortgage, My, rates, reduce, refinance, Weekly
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September 5th, 2009 at 11:09 am
to find any formula to calculate money just yahoo how to calculate money and the formulas will appear!!!
September 5th, 2009 at 12:08 pm
I use this calculator: http://ray.met.fsu.edu/~bret/amortize.html
You can use it on any loan/credit card you are paying back. You can also see the amortization table to see how much is going towards principle & interest.
Answer from the above calculator is: 2091.10/month
September 5th, 2009 at 10:37 am
I just started to refinance my home and after scanning you tube came across this video, anyway i took note about the 60 day lock. So i used it with my bank and the loan officer got sooo pissy !! he was mad, like it was some insider ammo that were not sposed to know about. Thank You Ed !!
September 5th, 2009 at 11:42 pm
Your mortgage broker can supply most of the information you will need.
If you wanted to do this by yourself consider the following.
You can figure out the mortgage payment with the online calculators.
The property taxes are set by the county and there will be information that they can provide. Depending on how the taxes will be paid it might be something you pay in 2 payments or it might be paid through an escrow (divide by 12 after the account is set up with an initial amount).
The insurance can be obtained by getting a quote from an insurance agent. Monthly or some other payment plan is up to you and the lender.
PMI is only a factor for some loans. The key is the down payment. Best to get a quote from a mortgage broker to see what loans you might qualify for and if PMI is required. There are loan options where you would not have PMI while still having a high loan to value.
September 6th, 2009 at 12:08 am
UK reply
Agree with 2nd answer re 3.5 x salary but in the UK there is an even bigger importance now!
If you haven't got 20% deposit – forget it! That is 20% in real money not borrowed from someone else!
Banks do not want to lend anyone at present, so they will only lend to the best possible repayers!
Also in the UK now is not the time to buy!
Houses have dropped 16% in the last year. Projected to drop 15% this year, could be more!
September 6th, 2009 at 12:36 am
September 6th, 2009 at 8:38 pm
It's unbelievably complicated, so use a mortgage calculator. http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx
September 7th, 2009 at 9:16 pm
This needs a bit of clarification.
You say that it was locked at 9.09% and then it was not locked (at all?) which implies that it is variable. Is this a mortgage or a home equity line of credit? If a mortgage, what type of program? An option ARM perhaps?
Basically, if you look at your original loan documents that were signed to close the loan and they include the 9.09% rate I would take whatever "fix" they are willing to give you. Like the $1400. If the loan docs state a different rate then you can take legal action on the bank but I can tell you from experience that rarely will a banks documents allow legal action. They cover their butts somewhere in there.
If they're offering to pay your rate difference due to a miss communication then take what they're offering; sounds like they are trying to fix an issue with something outside the box. I work in the industry and my company would never authorize a credit back to a loan.
If you have a bad taste from it all you can go to a local competitor under the disguise of looking for a refinance and they might review your loan documents for you if you explain the mishap.
September 8th, 2009 at 10:53 am
I have MS Excel 2003 which doesn't have this specific function wizard built in. It has a template for mortgage amortization tables which can be downloaded. However, you can create your own formula if you know what the monthly payment of the mortgage is. Create 5 columns; payment date, payment amt, interest pmt, principal pmt, and loan balance. For the first payment date create the row like this: In the interest column, your formula is 200000*.05/360*30. In the principal column your formula is payment amt – interest amt (the previous column). The loan balance column is 200000 – principal pmt. For the second payment date (and all rows after) use the same formula except for the loan balance. That formula would be the previous loan balance (the cell just above) – the principal pmt.
Copy the second row of formulas for the entire length of the loan (each row is one month).
It's much easier to show this on a spreadsheet than it is to write it out like this. Basically, mortgage interest is calculated by taking the loan amount times the interest rate and dividing it by 360 (avg number of days in a year). This gives you the daily interest amount. Multiply that by 30 days (avg number of days in a month) to get the total interest for the month. Subtract the interest from the monthly payment amount to get the amount applied to the principal. Subtract this from the total loan balance to get the new loan balance. Use this new loan balance to calculate interest and principal for the next month, and so on and so on…