Loan Calculators [3]
The following loan calculators are below;
- home equity loan calculator
- income (wages/salary) calculator
- reverse mortgage calculator
- all purpose loan calculator
Home Equity Loan Calculator
Enter your homes current value, current mortgage balance, and LTV (loan-to-value-home-equity). Shows the loan you would be eligible for, subtracts what you owe, and shows how much cash you can get your hands on for whatever purposes you may need it for-).
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Income Calculator
Shows average monthly income and your annual income. Enter your weekly salary or income. This can be your gross income if you are applying for a loan and need that number or it could be your net income if you just want to know your monthly and annual net income levels:
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Reverse Mortgage Calculator
Enter lump sum advance, years to get payments, interest rate (without percentage sign please), and monthly payment you want. The result provides the total value of the mortgage that you will have at the end of the years you are receiving payments.
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These tools are great financial tools to use and play with the numbers until you have a combination that you are comfortable with and can afford. Of course you do have to use realistic numbers for things like the interest rate and the value of your home. But you can also vary the amount of the loan or the monthly payment until you have something that you are comfortable with.
Some mortgage companies will offer really great interest rates that are lower than other companies which can be very attractive. Sometimes they add on processing fees etc and will not budge on these numbers. By using one of these tools you can calculate the total cost of the mortgage with and without processing fees at various interest rates. Occasionally a loan or mortgage that has a slightly higher interest rate might be a better deal than one with a lower rate that also comes with processing fees.
Another factor that is not included in the above calculators are the property taxes on any property that you may purchase. Every state calculates their taxes differently so it is tough to design a calculator to take this into account. You can obtain an estimate of the taxes from your real estate agent or by asking the current owners for a copy of the previous year’s tax statement. Buyers should one twelfth of this number to the mortgage payment to come up with their total monthly payment. The term PIT or principle, interest and taxes is the number that many banks will look at and compare to your monthly income to confirm your ability to qualify for the loan in addition to things like employment, income and credit ratings.
Most people are often surprised about the amount of a mortgage or loan they can afford, especially when they sign up for a longer amortization of say 25 or 30 years. This has the effect of lowering the monthly payment by a large amount making them much more affordable. Consumers always need to be careful that they can afford these payments. Some will sign up for as long a term as possible to fix the interest rate for that term. The term is the length of time that the interest rate is fixed, before it is reset at whatever the prevailing rate is at the time of renewal. The amortization is the length of time that the mortgage will run for the consumer before it is completely paid for.
If you feel that interest rates are going up, it is a good idea for most people to sign up for a longer term to avoid future interest rate increases. Of course the reverse can be possible were you have signed up for a mortgage only to have rates drop.