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How to Calculate a Mortgage?
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Posted On :
Oct-26-2010
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Article Word Count :
494
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The mortgage calculators can help a real estate agent to know the quantity they can borrow to buy a real estate property. These calculators are also useful for comparing the rates of interest between different loans.
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The mortgage calculators can help a real estate agent to know the quantity they can borrow to buy a real estate property. These calculators are also useful for comparing the rates of interest between different loans. This is an automated tool that makes people aware about the monetary implication of alterations in a mortgage financing arrangement. In this article we will exclusively focus on the calculation of mortgage.
The main variables include periodic interest rate, number of payments every year, compound interest, loan principal balance, total number of payments as well as regular payment amount. The capability of Mortgage Calculator is found in some financial calculators as well as some computer spread sheet programs like Microsoft excel. These can help a person to learn how to calculate a mortgage and this will prove to be really beneficial.
When a person buys a new home he uses the mortgage to finance a section of the buying cost of the house. There are some Internet based mortgage calculators as well. These can be used to check how much property a person can afford. A mortgage calculator can help a person in adding up his income sources and comparing them to his monthly expenses. It can also figure out other related housing expenses like property taxes etc. One can also test several interest rates and loan sizes.
An improved mortgage calculator will ask a person to provide information on property taxes in his locality. Usually, the mortgage calculator will ask for prior tax rate of the property. Once that is given, the calculator will work out an expected hike in property taxes and give the person an estimate of his monthly payments. For instance, a home worth $200000 needs a $2000 yearly payment for property taxes.
However, a person needs to keep in mind that the mortgage calculators may not give the right output about early payment penalties, fluctuating interest rates etc. Therefore, it would be advisable for a person to consult a veteran and professional mortgage advisor. This will help in getting a clear idea about his approximate monthly mortgage expenses.
Some of the lender sites also offer mortgage calculators. The majority of these applications are meant for a particular product. They give more or less accurate results. If a person avails the service of a mortgage calculator then he can easily check the total amount that he is required to pay monthly. These mortgage calculators can be used for other services and products like contents insurance, stamp duty etc.
Some mortgages that can be dealt with the mortgage payment calculators include sub-prime mortgages, adjustable rate mortgages, assumable mortgages and balloon mortgages. The adjustable rate mortgage has suitable interest packages. This is sought after by people as one can clear the balance at the term’s end. The payment is paid over 30 years.
If these steps are known properly, mortgage can be calculated very easily.
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Article Source :
http://www.articleseen.com/Article_How to Calculate a Mortgage?_39498.aspx
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Author Resource :
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Keywords :
submit article, Pay Day Loans, Loans, mortgage,
Category :
Finance
:
Finance
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