Morgage Repayment Calculator Helps In Loan Decisions

2007-03-08 10:33:40

( Financial )



When you obtain a repayment mortgage, you undertake to repay the loan in regular installments (usually monthly) plus the interest. With the use of a morgage repayment calculator, the lender will compute for the monthly payment on your repayment mortgage which generally will remain the same over the life of the loan until it is paid off.

But before choosing a lender, it is best for you to shop around. This will give you an idea of the repayment mortgage features and terms that you'll feel most comfortable with.

While you are shopping around for a mortgage, you can still get an idea of the amount of your monthly repayment. You could work it out yourself on a spreadsheet program in your computer. It is a simple worksheet, but tedious to construct.

There is a shorter way. You can visit Web sites, including the site of your prospective lender, that feature a morgage repayment calculator. There will be slight variations in the figures you need to provide, but they ask essentially for the same things: your proposed loan amount, the interest rate of the loan, and the loan term. Some sites will ask for the number of years, while others will ask you to input the number of months. You will also specify whether your loan is a simple repayment mortgage or an interest only mortgage.

The morgage repayment calculator will give you forthwith the amounts of your monthly payment and the total interest you'll pay over the life of the mortgage. Some may also indicate the amount still owed after a certain number of years and total interest paid.

You can use the morgage repayment calculator to compare the mortgage offerings of various lenders. The amount of your monthly repayment is important in gauging the effect of the loan on your lifestyle and other priorities.


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