Templates for a Home Mortgage Loan Calculator

by ryan on January 14, 2018


Reduce Your Debt – Use A Home Mortgage Loan Calculator

The day you mortgage your property, you become indebted for 10/15/20 years, depending on your term, and the money you have drawn as loan. Since you will be paying interest on the money borrowed, reducing your debt will mean reducing the pressure on your pocket. A home mortgage loan calculator can help you here – let us see exactly how.

Ideally, we would have loved to live life debt free. But can we really do this? The answer is “no”. None of us have the money we need to meet our needs, and thus we must borrow. But honestly, there’s no problem in borrowing, as long as you can pay back. So the most important part of a loan, any loan, is your ability to pay it back.

When you want to buy a property, you ask for a loan. It is offered to you at an interest rate. Let us also assume that you purchased the property with a loan 2 years back. Did you know that this interest rate keeps changing based on the market conditions? In other words, the interest rate at this time might be actually less than what it was 2 years back, at the time you took it.

So theoretically, if you can change to a new plan, you can save money on your monthly payments.

Various Ways in Which the Mortgage Loan Calculator Can Help You

A home mortgage loan calculator can help you here. Using the home mortgage loan calculator, you can find out whether there is a better deal than the one you have at this time.

Mortgage interest may be paid in several ways, and one of them is the Interest Only mortgage. In the US however, most home mortgage loans are ‘Amortized’ in which, the monthly payment includes both the principal and interest. In this, the principle gets reduced every month, and the interest is thus reduced too. In another system, you have to repay the interest only for the first few years. Repayment towards the principal part of the loan will begin only after a few years.

So learning about where you stand on the loan exactly, and finding out the best time to repay a larger portion of it, or even seek a new deal is not very simple. In fact, it could be quite complicated if you are trying to do all the calculations manually.

A home mortgage loan calculator can on the other hand do everything for you very easily. You must just enter the data in the home mortgage loan calculator, and it will give you everything in just seconds. It is really convenient.

Sample Calculators in Excel





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