| Most people make it easy for mortgage brokers to | | | | It should return a few other critical numbers : |
| steer them into deals that are more beneficial to the | | | | Total Amount the Borrower Will Pay |
| broker than the buyer - HOW? | | | | In our case above the total amount paid - interest and |
| Potential buyers lacking any grasp of how these loans | | | | principal - by the borrower at the end of 30 years will |
| actually work are overwhelmed with the process and | | | | be $431,640. |
| terms. Points, principal, interest rates, interest only loans, | | | | Total Interest the Borrower Will Pay |
| FRM etc.. can be confusing. | | | | In our case above the total amount of interest the |
| Why not be prepared by using a good online | | | | borrower at the end of 30 years will be $231,640 |
| mortgage calculator before meeting with brokers or | | | | about 53% of the total amount spent is on interest. |
| banks? There are many on the internet and most are | | | | Just think how a slight alteration in interest rate can |
| very easy to use. Knowing your personal financial | | | | have tremendous impact on the total amount paid by |
| situation, and some basic mortgage calculations can | | | | our borrower! |
| level the playing field and very possibly save you lots | | | | The above situation with an interest rate of 7.5% |
| of money. | | | | results in the total amount paid to drastically increase - |
| HOW ? It's easy! | | | | total payment now is $503,280, with $303,280 going to |
| Online Mortgage Calculator -The Basics | | | | interest only. The monthly payment would be around |
| Monthly Payment - Perhaps the most simple function | | | | $1398. |
| of a good online mortgage calculator is finding out your | | | | Online Mortgage Calculators - Summary |
| monthly payment. | | | | Our simple example shows you how a 1.5% jump in |
| All you need is: | | | | interest rate can cost the buyer over 70 thousand |
| - the amount you want to borrow | | | | dollars over the life of the loan. Obviously you want the |
| - the interest rate of the loan | | | | lowest rate when locking into a home loan and the |
| - the length of the loan - usually in years or months | | | | online mortgage calculator arms you with critical |
| You'll simply enter these numbers into the form and | | | | knowledge prior to that initial meeting with loan officers |
| submit...the online mortgage calculator will return the | | | | or mortgage brokers. |
| amount you will pay monthly based on the criteria you | | | | Find out how much home you can afford by using |
| entered. | | | | these easy online mortgage calculators. (link)It's easier |
| For example : You want to borrow 200,000 at 6% for | | | | to get a better deal on a home loan when you you've |
| 30 years - your monthly payment will be: 1,199.00 per | | | | done a little homework. Leslie Collins, mortgage |
| month. | | | | specialist has been helping folks understand the |
| Analyze the Scenario | | | | complexities of securing the best home loan possible. |
| A good online mortgage calculator will not stop there... | | | | |