Taking out a home loan is an important step in the home buying process. You need to consider various factors that will affect the overall cost of your mortgage. Factors such as the interest rate, loan amount, term of the loan, repayment schedule, and the repayment type.
So whether you're purchasing a house, investing in a property, or refinancing your home loan, an online mortgage calculator will come in handy. Let’s take a look at the reasons why you should use a mortgage loan calculator.
- It can compute your mortgage loan repayments: Using an online mortgage calculator is the easiest and quickest way to compute your repayments. This handy calculator can give you an estimate of what your mortgage repayments will likely be.
- You can determine if you can afford the repayments: With the results shown, you can easily estimate whether or not you can afford to borrow.
- It can calculate the interest: An online mortgage calculator has a feature that lets you know the total interest you’ll be paying over the lifetime of your loan.
- It’s easier to compare mortgages. Every lender offers different interest rates and loan features. So it’ll be easier to compare home loans with a mortgage online calculator.
- You can see if it’s time to refinance: You may feel like there’s a better home loan option for you, so refinancing might be a good idea. Using this calculator is an easy way to find out if it’s time to refinance to a new mortgage.
- It’s easy to explore your mortgage options: You can easily add loan features to the calculator, such as when you want to make additional repayments, link an offset account, or make a lump sum. This way you can see how much you can save when you add these features to your mortgage loan repayments.
An online mortgage calculator can help you make an informed decision by comparing various home loan options, understand your financial capabilities and liabilities, and simplify the process of calculating your mortgage.
Keep in mind that an online mortgage calculator can only give you a rough estimate of your loan repayments. This shouldn’t be taken as the actual loan offer of your mortgage provider, it should only serve as your guide or reference.