Home Loan Calculators

Home loan calculators are special tools used to compute overall payment and recurring payment for a home. These calculators will determine an estimated amount for down or monthly payments and may even consider interest rate fluctuations. Typically, home loan calculators determine monthly payment using these three standard inputs: amount of loan, years of loan and interest rate.

Home loan calculators are pre-formulated. Before its general acceptance, compound interest rate tables were used. These tables were, for the most part, confusing. That's home loan calculators are deemed more convenient to use.

For special circumstances, a good calculator will factor in other considerations:

  1. Private Mortgage Insurance: Good home loan calculators will factor in the extra monthly cost associated with private mortgage insurance.
  2. Property tax: Home loan calculators that also compute property taxes will include this data to come up with an estimated increase in property tax values.
  3. Extra payment calculator: If a borrower expects to be able to make several extra repayments, the extra payment calculator can determine a new date when the borrower can expect to fully own his property.

Since acquiring residential property through home loans has become norm, need-specific home loan calculators are now available:

  1. Home Loan Calculators for Budget Planners - These home loan calculators can help figure out how much a homebuyer can borrow as a loan. The equation includes current sources of income, regular expenses, rate of inflation, and estimated monthly mortgage payments for a desired loan amount. This is very useful for first time buyers who are still unaware of their real financial standing and want to invest in a home.
  2. Home Loan Calculators for Lump Sum Repayments - This special type of home loan calculators determines how much time and interest a borrower can save by making a lump sum payment. These home loan calculators can formulate different lump sum options. Based on these options, the borrower can decide which would work best given other expected cost.
  3. Home Loan Calculators for Stamp Duty - Acquiring a home requires a lot of paperwork, which include a requirement for stamp duty. Big thanks to this type of home loan calculators, borrowers may factor in additional costs to mortgage repayments.
  4. Home Loan Calculators for Split Options - Using these home loan calculators can help the borrower find a better split option. Split repayment is now a common feature in standard loans, wherein borrowers can opt to pay a portion of the loan under fixed interest rates and the rest under variable interest rates.
  5. Home Loan Calculators for Loan Comparison - These home loan calculators can determine the expected long term costs and monthly recurring fees for a certain amount of loan. Using this type of home loan calculators is very useful especially when a lending company has several loan options available.