How to use a home loan calculator

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Most everyone who owns property has secured a home loan at some point. A home loan calculator can help you determine monthly payments and the ultimate cost of the loan.

Once you’ve determined the amount you would like to borrow, determine what type of a home loan you would like based on your financial goals, how long you plan on living in the home and your tolerance for risk.

If you decide to apply for a fixed rate mortgage, a home loan calculator will provide you with your monthly payments, your interest paid after five years, principal balance after five years, total interest if your loan is taken to full term and your principal and interest paid at the end of the term.

If you’re trying to decide between a fixed-rate and adjustable-rate home loan, you can try a specific type of mortgage calculator that compares the two types of loans.

If you know you want to purchase a home and make interest only payments, there is a home loan calculator that can help you.

Home equity loans

If you have a certain amount of equity in your home or property and need cash, you may qualify for a home equity loan. Home equity loans are taken out to consolidate bills, pay unexpected expenses for college tuition or a child’s wedding, or even to pay for a new automobile.

Home equity loan interest rates are typically higher and a home equity calculator can help you decide if a lump sum home equity loan is right for you or if you should take out a line of credit on your home equity.