Mortgage Calculator are very essential for the calculation of the loan amount that can be provided to the loan applicant with the help of a number of information provided by the borrower. Every mortgage lender have their respective mortgage calculator systems.
Informations Needed for the Mortgage Calculator:
The first constituent required for mortgage calculation is the income of the borrower which can be known through the pay slips, bank statements, the second constituent is the credit score of the borrower, the third constituent will be the price of the real estate, information about any other debts or liabilities of the borrower. The mortgage calculator with this information will initiate the mortgage calculations and inform the borrower about the exact amount of loan that will be disbursed by the specific mortgage lender. The mortgage rates calculator will also inform the borrower about the rates of interest and the minimum monthly payments to be made towards the loan amount, tenure of the loan and so on.
Variants of Mortgage Calculator:
There are several variants of the mortgage calculator and the most prominent among them are:
- Mortgage Refinance Calculator
- Mortgage Amortization Schedule Calculator,
- Amortization Schedule Calculator
- Loan Amortization Calculator
- Refinance Closing Costs
- Mortgage Refinance Interest Rate
- Mortgage Interest Rate Calculator
- Mortgage Closing Cost Calculator
- Amortization Table Calculator
- Home Loan Refinance Calculator
- Mortgage Loan Amortization
- Mortgage Closing Cost Calculator
Facts about Mortgage Calculator:
Before the invention of mortgage calculators, mortgage calculation were done with the help of compound interest rate tables. Such tables necessitated good knowledge of the compound interest calculation procedure available in mathematics. The mortgage calculators are useful to know about the affect of changes within the mortgage variables.
Method of Calculation of Mortgage Calculator:
The method of calculation adopted by amortization calculator is unique. Suppose the principal amount of loan is $ 100,000 and is the tenure of the loan is 30 years, and the type of mortgage is fixed rate mortgage, the rate of interest per annum is 6.34 % and the monthly payments towards the principal amount is $621.58, the amortization calculator will provide the results then. It will calculate that after the completion of the tenure of loan of 30 years the borrower will have paid off exactly $ 123,771.48 towards interest and the borrower would have paid off the total amount of the principal also i.e $100,000, the most interesting fact that comes out from the results is that the interest here is almost 124 % of the principal amount.
The mortgage industry is a comparatively new concept in India and is mostly referred to as the housing finance industry. The worth of the housing finance industry has been determined as US $ 18 billion. The commercial banks have been growing rapidly in the direct housing finance segment which is witnessed in the rise of their share in this sector from 27 % in the year 2000 to approximately 57 % in the year 2003. Both the private sector and the public sector are involved in the mortgage financing sector in India, cooperative banks, non banking financial companies and a number of foreign and Indian banks are involved in this industry like Housing Development Finance Corporation, Industrial Credit and Investment Corporation of India, the State bank of India, Citibank and so on.
Last Updated on 5/26/2011