A mortgage calculator gives you a tremendous advantage when negotiating a new loan with your lender. If you want the best mortgage rates when you refinance, nothing beats knowing how to compare offers you may get from different lenders or brokers.

What to look for when using mortgage calculators.

Mortgage calculators provide you with simple computations on your loan. Here’s what you can figure out using such calculators.

**Mortgage/home affordability: **

How much mortgage you can afford is what you can calculate using the affordability calculator. This is turn will help you decide how much you can afford to spend on your home purchase.

**Monthly mortgage payment: **

Your monthly mortgage payments can be figured out by using mortgage calculators. Such calculators can also help you determine the total monthly payments for the entire loan term.

**Compare loans at various rates: **

There are mortgage calculators, which give you the chance to compare monthly payments on loans at different rates of interest. Such figures make it easier for you to pick and choose the best from a variety of loan programs available in the market.

**Compare payments at different terms: **

You can calculate and compare payments at different loan terms, say 10 years, 15 years etc. Loan calculators providing such computations show you how the total interest and monthly payments vary with changes in the loan term.

## Calculators For Different Purposes

A couple of years ago it was impossible to imagine that a person would be able to use a calculator online. But today everybody has such a wonderful opportunity. And online calculators are especially convenient for people who need to calculate mortgage and loan rates.

There are different types of online calculators for different purposes. Let us discuss a couple of them.

## Regular Mortgage Payment Calculator

The first one is regular mortgage payment calculator that helps to make up a table of payments that should be done monthly. To use it, it is necessary to enter the vales (principal and interest) and this machine will generate a table for you. The second thing to be discussed is also a simple loan payment calculator. With its help everybody can see the amount of money it is necessary to pay. And again, the procedure is more than simple. Just enter the necessary values (principal, interest rate and the number of years) and that is it.

As you can see, the word calculator has changed its meaning these days. These machines have become more convenient and easy to use by everybody. Even a child can use it without any problems. And the Internet makes the whole process even more convenient.

**APR Calculator:**

There are calculators that help to evaluate the APR or the Annual Percentage Rate on your home loan. To begin with, we should understand the meaning of APR. These three letters stand for annual percentage rate. It is the effective interest rate on your loan. You can compare loans on the basis of APR and select the one you prefer. However, not every loan with a low APR necessarily implies that you may be charged a low rate of interest.

With the help of APR calculator we can measure the overall cost of a loan. There are many “extra” expenses (closing costs, charges, such as mortgage insurance, points, etc.) that influence the interest rate over a certain period of time. And APR is extremely helpful because it shows how all the expenses mentioned above influence the amount of money you will have to pay.

It looks complicated, but in reality this calculator is one of the simplest. There is a lot of information that is necessary to input to get the result. Let us start from the beginning. The first digits would be the amount of loan. After that come interest rate (a quoted one) and the period of repayment. Then it is necessary to put the percentage of the loan that is made as one-time payment at the very beginning. And, finally, closing costs. All the figures can be calculated by means of closing cost, monthly payment, interest payment calculators.

The purpose of APR is to help you to compare various mortgage loans and to choose the best one for you. But you should keep in mind that the calculator works only if you are going to compare identical loans.

## Pre-qualification Calculator

This calculator makes it possible to understand the way lenders see you. This online calculator helps people to analyze the amount of money they can borrow based on their income, assests and the existing interest rate.

In order to see whether you prequalify or not it is enough just to enter the following financial information. Gross household income without taking into account deductions and taxes, the number of years you need to repay the loan, mortgage interest rate, the percentage rate (not the dollar amount) of local property tax rate, various monthly obligations and the amount of money you have to pay.

As you can see, the whole procedure is more than simple, but how accurate is it? Some people who have used this type of calculator say that the thing is accurate and shows real state of affairs. There are also others, who believe that this thing is not helpful at all and the results are inaccurate. The second group of people consists of those mainly, who are not very attentive and make a lot of simple mistakes, such as entering early income instead of monthly one or forgetting to enter different expenses (auto or bank loans).

People should be very attentive when using these calculators. They are accurate, but there are no laws that say that a lender is supposed to stick to a standard when thinking about how much to lend you.

## Amortization Calculator

When a person is interested in refinancing or is shopping for mortgage it is a good idea to use an amortization calculator. With the help of this device everybody can easily determine his/her payments over a period of time. Let us discuss the way this calculator works.

When using this machine for calculating monthly interest and principle payment it is necessary to keep in mind the fact that taxes, such as property ones and different types of insurance are not included in it. It is possible just to enter the amount of money a person wants to borrow, after that there is a line for interest rate and, finally, the period of time to make a repayment. The procedure is quite simple, isn’t it. It helps to understand the amount of money a person can afford to borrow.

There are also situations, when it is necessary to pay off a mortgage earlier. In this case you can adjust the term and see the amount of money you will have to pay monthly. As you can see, amortization calculator are very helpful in our life. With their help you can identify terms of mortgage that meet your needs better. You can also understand whether you will be able to pay this money or not. And remember, that it is better to do a short research to get the best loan rates.

## Saving Calculator

The answer to the question is not a complicated one and can be put in one sentence. Savings calculator makes it possible to see the amount of money a person can save by a certain date. But there are much more advantages in it. Let us see what they are.

Many experts point out that Americans put more and more money away, because of the current financial crisis. Household savings rate increased for about two per cent. What is more, folks are simply not prepared to the situation of financial emergency. That is why this machine is very helpful these days. Calculator makes it possible to enter the amount of money a person is ready to save monthly and the interest rate. Consequently, everybody can see the amount of money he/she will have over a certain period of time. Let us take 100 dollars, for instance, and see how much money we will have in 24 months if interest rate is 8%. After 24 months a person will have 2,584.21 dollars.

Many people still don’t understand the reason for saving money. They are numerous. If a person saves, it helps to fund his/her retirement, to pay for kids’ education, to get out of debt much faster and a lot more. The overall financial health will be much better. But to make saving possible a person should look for good interest rates and savings accounts, such as CD or certificate of deposit, money market or basic savings accounts.