How to Use a Simple Mortgage Calculator

While the Abacus is good for counting bushels of wheat as they’re unloaded and is good for other basic math, their are far better tools for amortizing a loan.

Fortunately for you and me, we now have Mortgage Calculators! And while they’re not so good at totaling those bushels of wheat you may be buying, Mortgage Calculators are great at, well, amortizing loans and quickly showing you how much you can borrow or how much a particular loan amount will cost in monthly payments.

So that you can get the accurate information you need and make the most of the Mortgage Calculators at American Capital Corporation – or anywhere for that matter – here are some key tips for you.

First, decide what information you want to calculate. Here are a few different Mortgage Calculators you can find at American Capital Corporation:

* Mortgage Loan Calculator – To generate an amortization schedule for a mortgage, use this calculator.

* ARM vs. Fixed Rate Mortgage – These calculators compare a fixed rate mortgage to different types of ARMs, whether it is a Fully Amortizing ARM or an Interest Only ARM.

* Mortgage Required Income – This calculator shows how much income you need based how much debt you have, the amount you want to borrow and other variables.

* Interest Only ARM Calculators – Use these calculators to examine an interest only mortgage.

* Amortizing Loan Calculator – With your desired payment, interest rate and term these calculators will determine the amount you can borrow. Or, enter in the loan amount and it will calculate your monthly payment.

Next, gather some basic information:

* Amount – The mortgage amount to borrow. For example, if you are putting $60,000 down on a $300,000 home, you need to borrow $240,000. So use $240,000 as your Amount.

* Term – How long in years (or months) you plan to take to repay the loan.

* Interest Rate – Use the rate you think you can qualify for.

* Extra Costs – Extra costs are items such as monthly Homeowner Association Fees, or money set aside monthly to pay Property Taxes, Insurance, etc. Add them in to get your monthly payment as they count “against” you when qualifying.

Finally, pick the calculator you want at http://www.acchomeloan.com/ and type the information in the boxes. It really is easier than counting bushels of wheat and estimating pecks per hectare.

If you would like to learn how to use different Mortgage Calculators, come see the Orange County Mortgage Experts at American Capital Mortgage.

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