3 types of a mortgage calculator

While most consumers have probably used a basic mortgage calculator before, few are aware this powerful tool comes in multiple variations designed to answer specific questions. Here's what you need to know.

Should I make extra payments?

If you have the extra money, you may be tempted to increase your monthly home loan payments. But to determine whether that strategy makes good financial sense, you'll want to use the basic mortgage calculator. Simply enter the time remaining on the loan, the interest rate, and the length and amount of the mortgage to determine how many years those extra payments will shave off your repayment plan.

Should I use my home loan to pay of debt?

If you're thinking about using a home loan to pay off debt, it's a good idea to consult the debt consolidation mortgage calculator that's focused on paying off debt. You'll need to enter your credit card balances -- and any additional debt you want to consolidate -- as well as the outstanding amount on your current home loan. From there, you'll need to run several calculations, adjusting the loan amount term and rate to find a plan that fits your budget.

How much income do you need?

Knowing your income isn't the same as knowing how much income you need to qualify for a loan. To answer that question, use a mortgage calculator found at one of the links above. To run the calculations, you'll need to know the desired loan amount as well as your monthly liabilities and current housing costs.

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