There is no better security when undergoing a DIY project, than having a tool kit on hand with everything you need; when it comes to refinancing, a good calculator is a must for your financial toolbox. Whether you are on a website or mobile app, financial calculators help you gauge your budget, make wiser decisions, and can save you a lot of trouble down the line when it comes to dealing with different lenders. Here are 4 calculators you’ll need to help make your workload a lot easier in terms of your mortgage:
Mortgage Refinance Calculator
This is a general calculator that helps you predict your future mortgage situation with a few key items like your mortgage amount, term, interest rate, and start date. Most mortgage lenders have it listed on their website and it provides a great convenience. You see, if you decide on a particular refinance option (FHA, Conventional, HARP), you can get a good prediction of how this will affect your mortgage within a certain amount of time. You can also compare how different rates will either increase or decrease your total mortgage. Use this to advantage when you’re looking for the best deals regarding your impending refinance decision.
If you are really concerned about your payments and want it done in a more organized manner, use an amortization schedule to help you out. An amortization schedule is basically a chart of periodic payments made to a mortgage and shows the amount you’ve paid towards interest and the principal balance, and your remaining balance. Essentially, if you’ve kept in tune with your mortgage, you’ll see the impact of regular payments to pay off your home. This schedule helps bring order and keeps you on track for the duration of your mortgage. Also, if you become more financially stable and want to get ahead, you can get an idea (using a mortgage calculator) on how to reduce your balance by updating the frequency of your payments. Get an approximation of what your balance will look like 10-20 years down the road.
This is a tool used to show your interest rate in your mortgage. Keep your options open to find what works well for you such as 15-30 year fixed mortgage or adjustable rates. Each have different advantages depending on your loan situation. Keep in mind that interest rates do change according to the market so if you have an adjustable rate, there will be times where the interest stays stagnant for a period of time. Afterwards, the interest rate can go either up or down. It all depends on your type of mortgage and the way the market works. This is a great resource to consider when determining how an interest rate fits with your budget.
Mortgage Payment Calculator
This is a valuable tool to help you figure out your monthly payments, but that can depend on whether or not you have a conventional or federal loan option. Some things that can go into a monthly payment includes the following: monthly principal, interest rates, APRs, and closing costs. You should also take into account how much of a down payment you’ve put into your home. If you have a federal loan, you’ll probably need to pay more interest just because you put a lower down payment into the home. You may also have to pay more closing costs in the back end if a lender covered the closing costs. Use this tool to get more of a realistic view of how much you would spend on a monthly basis in regards to your mortgage. This can seriously help you bridge the gap on how certain refinance options may or may not work well in your favor.