Use a Mortgage Calculator and Save Money

If you are considering a major change in your housing situation, such as a new home loan, using a free mortgage calculator can mean the difference between triumph and tragedy. These simple, straightforward tools enable you to easily compute potential savings, payment amounts and other financial formulas. Best of all, if you're considering a number of different loans, a free mortgage calculator helps you compare your options and make an informed decision. Which mortgage calculator should you use? It depends on the type of loan you want.

Mortgage Refinance Calculator

If you already own a home, you might want to determine how much you can save each month with a mortgage refinance. A free mortgage calculator can help you find out how your mortgage refinance payments will amortize over the life of the loan, or compute the remaining balance of your home loan.

Home Purchase Mortgage Calculator

First-time home buyers can use a mortgage calculator to compare the costs of continuing to pay rent versus investing in a home. Use a free mortgage calculator to estimate monthly mortgage payments, based on loan terms and interest rates entered. This is probably the simplest way to compare different mortgage options and get a straightforward, specific answer. When you decide to buy a home, you'll want to understand how much "house" you can afford, before you even begin browsing the real estate ads.

Home Equity Mortgage Calculator

A free mortgage calculator is also indispensable when shopping for home equity loans. Since there are so many types of home equity loans, it's easy to become confused or overwhelmed. Often, the loan’s primary purpose is to consolidate debt. Unfortunately, borrowers usually don’t know which rates and terms will help them to best accomplish their goals.

This is where a free mortgage calculator comes in. First, determine how much home equity you have, using the principal and interest payments you’ve made. Then, use a different mortgage calculator to discover your potential monthly savings. By consolidating higher interest debt such as credit card accounts into a low home equity loan payment, you could potentially save hundreds — or even thousands — in interest payments.

Before making any major financial decisions, consult an expert (or two) who can evaluate your needs from an objective standpoint, and help define your options. While a free mortgage calculator can help you determine payment amounts, compare loan terms and weigh renting versus owning, this tool is no substitute for working with a real, live Mortgage Banker.