5 Different Types of Mortgage Calculators & Their Features

Do you want to estimate your monthly mortgage payment, including your principal, interest, taxes, insurance and PMI, before starting your search for a dream home? Then, a mortgage calculator can give you the solace. Along with letting you know how much house you can afford, it will help you see how your monthly payment changes by making updates to your home price, down payment, loan term, and interest rate.

When you go online, you will find there different types of calculators. Are you wondering which mortgage calculator Texas will be the right choice for you? Well, these mortgage calculators and their features and then determine the right one.

  • Refinance calculator

If you are an existing homeowner, who is contemplating refinancing and want to know whether it makes financial sense or not, you can use this calculator. This calculator will show you things like whether refinancing from an ARM to a fixed-rate mortgage will be worth the cost. Moreover, you will need to know what your current adjustable rate terms are and what the fixed rate that you are likely to qualify for is. Besides, the calculator will help you understand whether a lower rate will offset the cost of refinancing or not.

  • Payment calculator

Are you wondering how to determine the payment amount on a fixed rate or variable rate mortgage? Then, this calculator will be an apt choice for you. To calculate it, you will need to know the amount of the loan, the length of the loan period, the interest term, the interest rate, as well as type. Most of these types of calculators will then tell you the expected payment amount, as well as annualize, your mortgage balance.

  • Payoff calculators

Diverse payment schedules and extra payments will affect the mortgage payoff date and the interest that will be paid. None but a payoff calculator can help you to know this. If you are planning to build equity faster and reduce the amount that you pay in interest then this calculator will be the right choice for you.

  • Points calculator

A mortgage points calculator is very useful when you want to determine the break-even period on a mortgage while paying points. The concept of points can be very confusing to various home buyers. However, this calculator allows one to see the effect on your payment and terms while you pay points up front.

  • Second mortgage calculators

If you are a homeowner and thinking about taking out a second mortgage, then choose this type of calculator. It will show you the effects on your mortgage, as well as results in the overall payment. Moreover, it can calculate and show you the effects of taking out a “piggyback” mortgage, where a first and second mortgage is taken out at the same time. Though it is a complex calculator, it can be very helpful in figuring out how to structure a mortgage with less than the standard 20 percent down payment.

Different mortgage calculators come with diverse features. You can explore various types of calculators that are available online, and then use the one that will give you an accurate estimate and thus, make the home buying process easy and less painful for you.

Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.

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