|It will also use the information you provide to calculate an amortization schedule, which offers all of the details regarding the loan offer.
- Provide the total home loan amount. (Subtract anything you plan to put down before entering this amount. It is just the amount you plan to borrow.)
- Enter the annual interest rate you will pay, based on current interest rates or specific offers you have obtained from lenders.)
- List the term of the loan, or how many years the loan will be paid.
Once you enter this information, click the calculate icon and it will show you specifically how much your monthly mortgage loan payment will be, based on the terms you specifically entered.
The second option is to calculate the amortization schedule. This document outlines how much you will pay towards interest and principle with each payment you make. There are a few important areas to notice on this home loan calculator document.
- Look towards the end, for the final payment. Scroll over and notice how much interest you will pay on the loan over the life of the loan.
- You will also learn how much the loan will cost you in total.
- This document gives you insight into how much you will pay for the loan and where each payment is divided, in terms of how much will go towards principle (the amount you borrowed) and how much will go towards interest (the charge for borrowing the money.)
A home loan calculator is a tool to give you information. While the specific details depend on what you put into the calculator, realize that this free to use calculator is one of the best tools to help you to see if you can afford to purchase a home.
Compare several loans. Look at different loan values. Perhaps you can afford a slightly higher monthly payment and therefore you want to consider buying a larger home. On the other hand, you may want to compare the differences between a 15 year mortgage and a 30 year mortgage.
The calculator provides information based on a fixed interest rate. The specific information for your loan may vary depending on other qualifications and terms.