A mortgage repayment calculator can be a very useful tool to use when deciding on taking out a mortgage. As the name implies it is used for determining how much a customer would have to pay in monthly instalments. A typical monthly mortgage payment is broken down into the capital repayment element as well as the interest element.
Some calculators can even go on to show how much payments will be in the years to come. This neat tool may be used for planning and budgeting purposes.
Who Will Benefit
Anyone in the market for a new mortgage may benefit from using a mortgage repayment calculator. The calculator could be used by customers to determine the amount they will qualify to borrow as well as how much income they should have in order to afford their new mortgage.
The mortgage repayment calculator could provide the benefits that are shown below:
• Using the calculator could help to provide clear figures that customers can use in the decision making process
• It may be simple and easy to use. Just plug in the required figures and the result is calculated for you
• Customers can adjust the inputted figures accordingly until they find a mortgage repayment that they can afford.
While these may seem like overly simple benefits, customers may find that it can help them make the best decision regarding which mortgages are best for them. In the end, using the figures from the calculator may help to save you hundreds of pounds over the life of the mortgage.
Mortgage repayment calculators can be found on different websites including that of the mortgage lender.
To find out how much you can afford to repay, the calculator will ask you to input information such as:
• Loan amount
• Number of years you require
• The interest rate of the loan
• Loan repayment method e.g. interest only or capital repayment
With this information, the calculator will inform you of the monthly instalment and total interest you are likely to repay over the life of the loan.
• Although it could come pretty close, the mortgage repayment calculator does not provide exact figures, it is only a guide. The exact details of your mortgage will depend on other factors, such as lenders income multiples, current rates, special deals etc.
• Different lenders may require different input information so you may end up with varying loan sizes depending on whose calculators you use.
The main aim of the mortgage calculator is to provide useful information that can be used to help customers make informed decisions about how much to borrow on their mortgage.
• Using the calculator is simple and easy
• Clear figures are produced at the end of the calculation, showing the interest only or repayment figures
• You can use the information to estimate the size of mortgage you can afford and qualify for
• The calculator provides only a guide, actual figures will depend on additional factors of the lender.