Loan Mortgage Calculator
An online loan mortgage calculator is one of the great tool to helps prospective home buyer to estimate monthly payment, total interest pay and term of the loan. Although the accuracy of the calculator is very high, but it does not indicative the exact loan rate of the loan. It just an estimation for home buyer. If wish to find out the actual cost of the loan, borrower must speak with the professional mortgage counselor. However, having a guideline before meet up with lender is more favor to borrower.
Below are steps of how to use the calculator correctly :-
1) First of all you should determine the balance or principal of the loan. For instance, the home worth $225,000 and you place $25,000 as deposit. The principal amount would be $200,000.
2) Decide how many years of term your are looking for. From 15 - 30 years, there are some banks or lenders offering the 40 years of repayment term. If you have no idea about this, just put 30 years 1st to figure out the monthly payment. Mark down the results generated from 30, 40 & 25 years, make sure the monthly installment will bot exceed your budget.
3) Fill in the interest rate of the loan. But the rate are vary among each lender, just put the common rate for estimation. And loan term is 30 years.
4) After all required data is filled inside the calculator, press "calculate" or "submit". All require result or output will be prompt out immediately based on the information provided.
5) You shall use 2 calculator from different sources to cross check the result. Usually the result appear is slightly different or same, if the results are different too much you should get the other loan calculator from reputable lender.
Please be reminded that, regardless the results, there are still some chances to reduce the interest rate or admin fees. Just discuss with lender, you might acquire some discount from them.
For more home loan information, please check out
Home Loan Guide instead of Loan Mortgage Calculator
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