Amortization Calculators: Discover Your Mortgage Options

By Geoff Walker
Calculators for Mortgages Columnist

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Mortgage costs are probably the biggest financial commitment you will ever make. So it's important to get the best deal, and check out the different mortgage rates and repayment terms offered by different mortgage companies. An amortization calculator is an easy-to-use and important tool that can help you with this. You can use an amortization calculator to work out what your monthly repayments will be over the life of your mortgage. The amortization calculator automatically takes care of the figures, and lets you experiment with a range of mortgage options.This calculator can help you answer questions like:

• How much can I afford to borrow?
• What effect do different mortgage interest rates have on my payments?
• How much will my monthly payment go up (or down) if I repay the loan over a different period?

The amortization calculator gives you, at the touch of a button, the ability to experiment with different mortgage data, and input various mortgage rates and other figures you can obtain from mortgage companies.

Mortgage Amortization Calculator: How it Works

To find out what your monthly repayment will be, you need to input the following information:

• Total Loan Amount you want to borrow
• Loan Term (in years)
• Mortgage Interest Rate

Press 'compute' and the amortization calculator indicates what your monthly payment will be, based on the information you have entered, separated into the monthly mortgage payment and the total monthly payment including any other costs such as real estate taxes and insurance. Each payment combines repayment of the loan with interest on the loan balance.



About the Author
A freelance writer with degrees in arts and commerce, Geoff Walker has experience in corporate financial management, mortgages, and fund-raising.

Date :2007-04-05