Mortgage Calculators – 5 of the Different Types

When you discover the world of Mortgage Calculators your first thought may be “how cool is this!” Then you learn that there are several types of Mortgage Calculators and begin to feel a bit overwhelmed.

So that you can effectively use the Mortgage Calculators at American Capital Corporation – or anywhere for that matter – here are some key definitions for you.

Mortgage Loan Calculator – Use this calculator to generate an amortization schedule for your current mortgage. Quickly see how much interest you will pay and your principal balances. Some can even determine and demonstrate the impact of any principal prepayments!

ARM vs. Fixed Rate Mortgage – A fixed rate mortgage has the same payment for the entire term of the loan. An adjustable rate mortgage (ARM) has a rate that can change, causing your monthly payment to increase or decrease. This calculator compares a fixed rate mortgage to different types of ARMs, whether it is a Fully Amortizing ARM or an Interest Only ARM.

Mortgage Required Income – To determine how much income I need to generate to qualify for a mortgage largely depends on your monthly debt payments and the current interest rate. These calculators collect those and other important variables and determine your required income to qualify for your desired mortgage amount.

Interest Only ARM Calculators – Interest only mortgages can provide you with low monthly payments. A very real financial downside is that you are paying no principal during the interest only period. This type of calculator helps examine an interest only mortgage and its benefits.

Amortizing Loan Calculator – Enter your desired payment, interest rate and term and these will determine the amount you can borrow. Or, enter in the loan amount and it will calculate your monthly payment. You can then examine your principal balances by payment, total of all payments made, and total interest paid.

BONUS CALCULATOR Rent vs. Buy – Rent or buy your home? That’s a big question and it takes more than looking at your mortgage payment to answer this question. These calculators help you weed through the fees, taxes, and monthly payments to help you make a good financial decision.

To learn how to use different Mortgage Calculators, come see the Orange County Mortgage Experts at American Capital Mortgage for video tutorials.

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