A mortgage loan calculator isn’t an esoteric, scientific device – it’s really just a software tool which will allow you to better understand your potential mortgage loan; it will do this by running different variables (provided by you) through a number of mathematical formulae (saving you the hard work) to spit out sensible answers.
By use of this tool, not only can you figure out different factors of the loan such as the amount you will have to pay as interest over a period, or the amount you can actually afford to borrow, it will also allow you to figure out the different implications (financial) of a change in one of the variables (this allows you to be better prepared for possible life changes in the future). So if you are looking for a mortgage loan in Greater Boston, the use of such a calculator can help you narrow down the different choices available.
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Mortgage Loan Variables Commonly Used by Calculators
The number of variables used will differ according to the type of mortgage loan calculator which you use (since different calculators calculate different factors, are meant to be used for a specific type of mortgage loan alone). The commonly used variables are:
- The principle loan balance of the mortgage loan
- The compound interest rate
- The total number of payments
- The total number of payments in a single year
- Length of the mortgage loan
- Actual price of house
- Amount of down payment
- Closing costs
As the complexity of the mortgage loan calculator increases, so does the number of variables it can account for.
Why Use a Mortgage Loan Calculator?
- Education: If this is the first time you are applying for a mortgage loan in Boston, the calculator will allow you to familiarize yourself with the different factors which will play a role in deciding the total cost of your loan.
- It allows you to Run Different Scenarios: You can never be sure of the future, but by the use of a simple mortgage calculator, you can be better prepared for worst case (what if) kinds of scenarios. Simply change the variables of the calculation and you will gain a basic understanding of what you might face in the future.
- It Simplifies the Job: The usual process which is followed by most loan applicants in Boston is to contact a lender from the Greater Boston area to look at different loan options. Once you receive the details of what’s available, by the use of a mortgage loan calculator you can easily and quickly compare the different loans to find the best fit for you.
- Saves your Time: All of the different calculations can be done by hand or by the use of a model built in an excel spread sheet. But it will take a lot of time and require deep knowledge in the field. An easier method is to use a calculator.
There are a number of different (free) mortgage loan calculators available on our site. So make use of them to make your job simpler and easier. Just make sure that you are utilizing the correct calculator (since different calculators are meant to be used for different types of mortgage loans)!