# What Is The Mortgage Calculator And Where Can I Find One?

## What is the mortgage calculator and where can I find one? A mortgage calculator calculates the principal interest payments that can be made by the borrower on their home loan. Would it make sense for you...

Would it make sense for you to buy a home, or would you be better off continuing to rent? How much would your monthly payments be, with interest, if you were to buy a house? How much of your monthly payments each month on a mortgage would go toward the principal, and how much would go toward interest? If you are seeking the answer to these and other questions, a mortgage calculator might help provide the answers.

"Mortgage calculators provide answers to some of the common questions in calculations that a borrower might have," explains Doug Perry, who has worked in the Consumer Markets Division for Countrywide Home Loans for 16 years. "The simplest example would be one that calculates principal interest payments on a loan. There is also a calculator that runs scenarios where you might be asking the question 'does it make sense for me to rent or buy a house?' Borrowers should check with their tax adviser for the individual situation. Calculators such as the 'rent versus buy' calculator that calculates monthly payments are found on lenders' web sites like Countrywide.com."

The calculators included on the website help you answer the following questions: How much can I afford? Can I afford this house? How much will I need for a down payment? Rent versus buy? Is now a good time to refinance? How much will my payment be? How much can I borrow from my equity?

The calculators are interactive and will provide answers based on the information you fill in to answer questions.

For example, if you were to use the calculator to determine your monthly payment, you would be asked how much the loan amount would be, what the interest would be, and the length of the loan.

By filling in the answers for a \$100,000 loan, 6% interest, and a 30-year loan, you would receive the answer after clicking "calculate my payment". You would be provided with not only the answer for a \$100,000 loan at 6% interest, but also at-close rates ranging from 5.625% to 6.375%. For a \$100,000 loan with a 6% interest rate and a term of 30 years, the monthly payment would be \$600 per month. With a 6.375% rate, with the other items being the same, the monthly payment would be \$624. On the other hand, with a \$97,000 loan, a 5.625% interest rate, and a 30-year term, the payments would be \$558.

If you were to use the rent versus buy calculator, you would be asked your property zip code, how much cash you have available, your current monthly rent, your current tax bracket, ranging from 10% to 35%, and your marital status, whether you want to afford more house, or pocket more of an income tax refund. You would then click on a button, which would provide an answer as to the tax advantage in buying.

If you were to use the calculator to determine whether you can afford a house or not, you would be asked only the property zip code, the purchase price, the maximum number of points, and the percentage of your down payment.

If you were to input 45840 (Findlay, Ohio) as your zip code, \$100,000 as the purchase price, 1 as the maximum number of points, and 5% as the down payment and click "can I afford this house," you would see that your total monthly payment with a 30-year loan would be \$833. The length of your loan would be 30 years. The loan amount would be \$95,000, with a \$5,000 down payment. The interest rate would be 6.750. Closing costs would be \$3,274. The cash required at closing would be \$10,202. Your monthly principal and interest payment would be \$616. Your monthly taxes and insurance payment would be \$155, your monthly mortgage payment \$62, bringing your total payment to \$833.

Obviously a mortgage calculator will not provide all the answers you need and will not substitute meeting with an expert, like the experts at Countrywide Home Loans. The various calculators available, however, can be very useful.