Mortgage calculators are remarkably useful tools for both first time buyers and current homeowners. Online mortgage calculators are free to use and can help borrowers make great savings by comparing the costs (including mortgage rates and mortgage fees) and payment terms of various mortgage products available on the market today.
Free Mortgage Calculators
A standard, free mortgage calculator is a quick and easy way for each borrower to calculate how much they can afford to borrow on a property by assessing what their monthly mortgage payments will be. Such a mortgage repayment calculator will require them to enter the amount they wish to borrow, the lender‘s interest rate, and the term over which the borrower intends to pay the loan off.
For almost every type of mortgage available, there is an online mortgage calculator for potential homeowners to work out if each product suits their financial situation.
Repayment Mortgage Calculators
The figure shown on the repayment mortgage calculator will give the exact total monthly payment comprising of the capital and interest amounts required by mortgage lenders for the repayment mortgages they offer.
Interest Only Mortgage Calculators
Those opting for a mortgage on an interest only basis will require an interest only mortgage calculator which will estimate only the monthly interest payments as the loan amount is paid back at the end of the mortgage term. Calculators for interest only mortgages cannot, however, work out the cost of any monthly premiums, so such additional costs will need to be added separately.
Offset Mortgage Calculators
As offset mortgages are designed to create big savings, an offset mortgage calculator is intended to provide an overview of the amount of interest borrowers could save if they offset their savings against their property loans. Offset mortgage calculators can also be used by borrowers to see how much earlier they could pay off their mortgage on an offset mortgage if they switched.
Business Mortgage Calculators
Different sorts of people will benefit from different mortgage assessments depending on their financial needs. A business mortgage calculator will provide business investors with the estimated monthly payments for both repayment and interest only commercial mortgages for their property investments.
Buy to Let Mortgages Calculators
Specifically for those in the property industry, a buy to let mortgages calculator can establish the required rental income needed from a property if a landlord is to rent buy their property and rent it out; therefore it will calculate how much money can be borrowed for such a buy to let property mortgage.
First Time Buyer Mortgage Calculators
Those just starting on the property ladder may want to use a first time buyer mortgage calculator. Calculators for first time buyer mortgages will prove invaluable for young borrowers wanting an idea of what their mortgage payments might be like, though they must remember that this is only an illustration and should never be considered as an actual quote.
Second Mortgage Calculators
In contrast, homeowners who have held a mortgage for many years can equally benefit from using a mortgage calculator, particularly if they need to raise some extra money by taking out an additional loan. Borrowers of second mortgages are considered as being in a very risky position as they are essentially taking out two mortgages in order to use equity on their property, so a second mortgage calculator can be used to ensure the long-term costs won’t override getting a quick cash fix.