Modern mortgage calculators, also known as home loan calculators, which are often interactive and can be found online, are probably the most easiest and convenient way of assessing your home loan options. While traditional mortgage calculators allow you to calculate how much your home loan repayments are over the term of your loan, modern mortgage calculators allow you to do much more. In fact, modern mortgage calculators are excellent tools for fine-tuning your finances.
Different Types of Mortgage Calculators
There are a selection of home loan calculators on offer, all, of which, will help you to better manage your money and repay debt. Home loan calculators that you will typically encounter include the following:
- The Borrowing Calculator – How much can you borrow? To use this calculator you will typically need to know how much you and your partner earn and exactly what you spend per month. You will also need to know your credit card limits and the details of the loan you are considering, such as interest rate and loan terms. Once you have filled-in your details the calculator will then let you know how much you can borrow in total and what your monthly repayments will be.
- The Stamp Duty Calculator – How much stamp duty will I pay? For this calculator to be accurate you need to enter the state that you are looking to buy in, the property value and the loan amount. This calculator, if it is good, will then show you how much the following fees are: mortgage registration, transfer, stamp duty on the property and the stamp duty on the loan and the total cost.
- The Home Loan Repayment Calculator – How much will my home loan repayments be? You will need to know your loan amount, interest rate, loan term, repayment frequency and repayment type for this calculator to work well. The calculator will then be able to tell you how much your home loan repayments, per month, will be and the total amount of interest you will pay over the term of the loan.
Other calculators that you may come across and find useful include the budget planner, extra repayment and the loan comparison calculator.
Choosing the Right Calculator
Using all, or a selection of these calculators, will help you to make better sense of your current financial situation. They will also help you to work out how you can save more money over the term of your loan.
Selecting the right calculator depends entirely on your needs and what question you are looking to answer. For instance, if you want to find out how much stamp duty you’ll pay when you buy a home for $300,000, then use the Stamp Duty Calculator. If, however, you want to make extra repayments on your mortgage and would like to know how much you can save, then use the Extra Payment Calculator. Even if you don’t have a specific question in mind, mortgage calculators are useful tools for financial planning and can tell you a lot about you and your spending habits.
Want to know more about mortgage calculators and how to use them? If so, then contact eChoice and we’ll show you how.
Written by eChoice