By John Velazco

Avoid the speculation on your refinance by using the online mortgage calculator to see how much you will have to pay up for a 30-year refinance loan term. The precision of the mortgage calculator offers you the advantage when deciding if you can or cannot afford a refinance at the moment. Calculating mortgage rates used to be the work of an experienced accountant or mortgage expert. Not now, with the advent of the Internet. Previously borrowers had no idea about all the calculations involved when they contacted a lender for home loan or a refinance. Borrowers were given the details with regard to the workings of their loans for a particular loan term, and they were prepared what to anticipate when they choose a specific mortgage rate.

However, at present the scene has totally changed and borrowers are currently equipped with the information of the different mortgage rates before contacting any lender for a loan. Borrowers at present have at their disposal the service of the free online mortgage calculator which provides a comprehensive summing up and details of your mortgage amortization for various loan terms you look into. You can work out if you can manage to pay for a mortgage right away and will help save you the trip to the several lenders just to make inquiries and find out that you can’t afford a mortgage right now.

So, what can you expect from a mortgage calculator? Well, an online calculator will provide you the following information once you have decided on the suitable loan term, monthly payment derived from the market value of the home, interest rates, down payment percentage. The results are normally derived from calculations on Private Mortgage Insurance for loans with below 20% down payment and town property taxes given that these have an effect on monthly payment for the mortgage.

The free online mortgage calculator is easy to use and will need you to key in the sale price of the home, amount of down payment, duration of mortgage, and annual interest rate. For instance, if you are getting a mortgage to finance a $300,000 home and you can just manage to pay $30,000 as down payment, and you prefer a 30-year loan term at a 5% annual interest rate. The calculator will show you that the amount financed is $270,000 and your monthly EMI will be $1,796.31 for the principal and interest alone. Press the calculate button and instantly you will have the results.

You will as well be informed on if you need to pay any Private Mortgage Insurance, which can be 0.5 to 2.75 percent of the loan amount and will differ from lender to lender. By now, you will make out if this mortgage is affordable to you or not. If you can come up with 20% or more as down payment for the mortgage amount, you can save thousands of dollars on your mortgage. Don’t be hesitant to use the online mortgage calculator since it is free and so will help you prevent the speculation by showing a comprehensive calculation of the monthly payment, interest and principal paid, and the outstanding balance year on year accurately.

About the Author: John is an expert in the field. For more information on

Mortgage Rates

, and

Mortgage Rate Calculator

Please visit: http://www.ratesupermarket.ca/

Source:

isnare.com

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