A mortgage calculator is a tool that helps potential home buyers determine how much they can afford to borrow when purchasing a home. The calculator takes into account the borrower’s monthly income, debts, and the current interest rate to calculate the maximum monthly mortgage payment the borrower can afford.
A mortgage is a loan that is used to purchase a home. The loan is secured by the home, and the borrower makes monthly payments to the lender. The monthly payments include interest and principal. The interest is the cost of borrowing the money, and the principal is the amount of money that is being borrowed.
Mortgages are typically paid over a period of 15 or 30 years, so it is important to think such a decision thoroughly. The shorter the loan term, the higher the monthly payments will be. One one hand that is a risky strategy from a cash-flow perspective, but on the other hand the less interest will be paid over the life of the loan. The longer the loan term, the lower the monthly payments will be, but more interest will be paid over the life of the loan.
The mortgage calculator below is from financial-calculators.com. It is a helpful tool at any stage, but especially when you are beginning the process of buying a home. You can use it to determine how much you can afford to borrow and give you an estimate of your monthly mortgage payment.