What EVERY Mortgage Calculator Should Be Telling You

A simple mortgage calculator can tell you how much your mortgage payment will be at different interest rates at the term you select. You can even find out how much your payment will be if you decide to pay your mortgage monthly, semi-monthly, bi-weekly, weekly or make accelerated bi-weekly or weekly payments. Your mortgage calculator should also be telling you some other information.

What Every Mortgage Calculator Should be Telling You

Payment Amounts and Interest Paid

The mortgage calculator should also be sharing the following information with you so that you can make an informed decision about your loan:

  • The total amount you will pay in regular payments
  • Amount of Interest Paid
  • Amount of Principal Paid
  • Balance Owing at the End of your Term
  • Amortization Period
  • Actual Amortization Length (will vary if you are making payments more often than once a month or making lump sum payments)
  • Total Interest Paid over the Amortization Period
  • Total Interest Paid over the Amortization Period

Payment Allocation Calculations

As a prospective homeowner, you’ll want to know where your mortgage payment is going year by year. Once the mortgage starts to run, you’ll find that in the first few years, a good chunk of your payment goes toward interest on your loan. As you start to pay down the mortgage, you will be paying less in interest and more toward the principal, which means the balance will be going down faster than in the early days of your mortgage.

In order to make a good choice about whether a particular mortgage package is the best option for your needs, you need to have all the facts in front of you. Mark Price is an experienced mortgage broker who can guide you through the process and answer any questions you have. Call him today to talk to him about your home mortgage or commercial financing needs.

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