How Mortgage Calculator Can Keep You Out of Trouble

 

An eternally ongoing tug of war between lenders for the best clients complicates matters. Trying to compare current mortgage rates, too many figures come up, varying according to region, duration of mortgage, interest, and the principal amount. Is there a national average, as some lenders claim? 

Lender A says that the weekly national mortgage rate today for the 30-year fixed loan stands at 5.35%, an increase of 7 basis points over last week. They are willing to lend at a far lower interest rate, maybe 0.50% less. 



Lender B quotes mortgage rates based on a hypothetical example of a purchase price of $200,000 with a down payment of $50,000 in zip code 10017. The loan amount is $150,000. According to loan durations, the following interest rates apply.

●       30-year fixed has a rate of 4.750% with a monthly payment of $782

●       20-year fixed has a rate of 4.500% with a monthly payment of $949

●       15-year fixed has a rate of 4.125% with a monthly payment of $1119

●       10y/6m ARM attracts a rate of 4.625% with a monthly payment of $771

Using the Mortgage Payment Calculator

Mortgages and refinance loans are different from the money you might borrow from a colleague. A loan from a colleague may involve no paperwork and no interest. Mortgage payments, usually monthly, comprise several components though it is mainly the principal amount and the interest that attract attention. But there is more. The fixed loan has the same monthly payments and is easier with no surprises and ups and downs according to market forces. 

MortgagePayment Calculator has a format that includes all the different payments like insurance and taxes. At a glance, you know the entire story in fine detail. Nothing is left to chance and anxiety is lessened with all the information systematically arranged. Online and maybe offline too, the calculator may be used to study variations by entering different sets of figures. Greater confidence is the result. 

Trust the Mortgage Calculator

The loan amount is known as the Principal. The Interest is paid because the lender took a risk by lending the money. Higher interest means higher monthly payments.  Long-term loans like 30 years attract lower monthly payments and are thus preferred.

In addition to principal and interest, property taxes have to be paid. These amounts are used for public services like running schools. The lender collects the taxes and maintains an escrow account. Insurance is also paid and included in the escrow account. Home price and loan term are displayed. Interest rates and down payments are shown in the calculator. The start date and end date for payments are shown.

Several financial companies offer the Mortgage Calculator services online. Check them out. They present similar designs with minor variations. Go for the one that includes more details.

 

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