RateAPY

How to Use a Mortgage Payment Calculator

Posted by: RateAPY Bank Rates News
February 17th, 2010

Mortgage payment calculators are plentiful on the Internet. There are several different types. Following are a couple of tips so that you’ll know which kind of loan calculator you may need, and what type of information you should provide.

A basic mortgage loan calculator will ask you for a loan amount, interest rate, and term. The term is the amount of time you’ll need to borrow the money, usually in months. The loan calculator will then calculate an amortized monthly payment. Amortized means that you pay a portion of the principal along with the interest each month so that the loan is paid in full by the end of the specified term.

A refinance loan calculator is the best choice if you are using the loan calculator to decide if a home loan refinance makes sense for you. You will need to know the interest rate, remaining term, and principal balance of your current mortgage to compare it to a new refinance loan.