Mortgage calculators are online tools that can help you save big money on your home loan. Some free calculators for mortgages are simple – you simply put in your mortgage amount, loan length and interest rate to get a general idea of what your monthly payments will be. Other ones give you a lot more information but require you to enter a lot more details about your loan. Here are some good reasons to use one of these free online tools for your mortgage in Canada.
1. Use mortgage calculators to help you decide over what length you should amortize your loan. When you type in your information, the calculator will show you how much you will pay in interest over the length of your mortgage. The longer your mortgage is amortized over, the more you will pay in interest. As you use the calculator, you will be able to change the length of your mortgage to determine what will result in both payments you can afford and in having a mortgage for the least possible time.
2. Use one of these free mortgage calculators to help you choose between a variable or fixed rate. While a fixed rate may be better for you if you don’t like any risk at all, a variable rate tends, when used responsibly, tends to result in more of your payments going against the loan principle and results in you being free of a mortgage faster than with a fixed rate mortgage. By using a calculator, you can decide whether you want to go with a fixed rate or a variable rate.
3. Use one of the online mortgage calculators to get ready for the mortgage application process. By using one of these free calculators, you will be able to find out how much you can really afford (and how much the lenders will let you borrow), whether variable or fixed rate is better, and how to pay off your mortgage soon. It is important to be informed about this important financial decision you are making.
4. Use mortgage calculators to help you compare the offers from different lenders. With all the different aspects to a mortgage (rate, length, repayment options, etc), it can be hard to figure out which one is a better deal. By using a calculator to help you with this decision, you can be sure that you know exactly which one is a better deal – there is no guesswork involved – just simple numbers.
In short, by using a mortgage calculator, you will be a more informed mortgage consumer. You will be more aware of your options, and how little differences can make a huge difference on the length of time for which you have a mortgage. Be informed and be mortgage free faster!