More payment calculator variables
Beyond that, mortgage payment calculators can become complicated, but also offer borrowers more information.For example, a calculator might offer a way to add property tax and homeowners insurance expenses or mortgage insurance premiums to the monthly payment. Or, it might allow you to figure out the effect of making a larger payment every month, making an extra payment once a year or making a lump-sum payment.Other functions can help borrowers understand adjustable-rate mortgage, or ARM, payments, biweekly payments or blended-rate or interest-only payments. Some calculators offer a built-in amortization schedule that shows all of the payments, divided by principal and interest, until the loan is paid off.
Mortgage payment calculators can also help borrowers figure out whether they might be able to get rid of mortgage insurance or weigh whether an ARM would be worth the risk compared to a fixed-rate loan. To understand the added risk of an ARM, use the calculator to compare the initial, fully amortized and highest possible payments to the payment on a comparable fixed-rate loan.
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