The world of Mortgage Calculators. When you first discover it 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.
Since you need and make the most of 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. Use these calculators to 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 - How much income is required of me to qualify for a mortgage? That depends in large part on your monthly debt payments and the current interest rate. Collecting those and other important variables, these calculators can determine your required income to qualify for your desired mortgage amount.
Interest Only ARM Calculators - Since interest only mortgages can provide you with low monthly payments, they may be attractive to you. The potential drawback however is that you are not paying off any principal during the interest only period. Use these calculators to examine an interest only mortgage.
Amortizing Loan Calculator - Enter your desired payment, interest rate and term and these calculators show you your total mortgage - that is how much you can borrow. Or, enter in the loan amount and it calculates your monthly payment. Some allow you to 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.
