7 Useful mortgage calculators that you should use

When you're going to buy a home for the first time or refinancing your existing mortgage, the first thing that you need is a mortgage calculator. This user-friendly financial tool can fulfill all the calculation needs of a potential homebuyer. If you can use a mortgage calculator correctly, you can easily choose the loan that you can afford.

There are different types of mortgage calculators. This article would specifically discuss about seven helpful mortgage calculators that the homebuyers should always use to make a good decision.

7 Mortgage calculators that the homebuyers should always use

1) Amortization calculator

This calculator would help you find out how much of your monthly loan payment is directed towards your principal and how much towards interest throughout the whole duration of the loan. You can also work out the amount you can save by paying some extra on principal. You would have a better understanding how your loan is being paid off.

2) Refinance calculator

This calculator would let you know in pretty basic terms whether you should go for refinancing. You shouldn't only take the interest rate into consideration. Closing costs are also there which might come to 2-3% of the loan amount.

3) Affordability calculator

Based on your income and debt level, this calculator would help you find out how much mortgage you are able to afford.

4) Closing costs calculator

This calculator would help you figure out various closing costs associated with borrowing a home loan by entering inputs like escrow fees, points and title fees.

5) Early payoff calculator

This calculator would demonstrate how paying extra on your monthly loan payments can help you pay off the loan sooner and save money on interest costs.

6) Additional payment calculator

This calculator is similar to the early payoff calculator. You can work out how much you need to pay as extra each month if you decide to pay off the loan within a stipulated period.

7) Mortgage payment calculator

By entering the loan term, loan amount and interest rate, you can easily find out how much you need to spend on your loan each month.

All the abovementioned tools are important and help people make a good home buying or refinancing decision.