This uniquely made calculator is solely intended to show the homeowner’s breakdown of his monthly loan payments until the balance is paid in full. It provides an accurate estimate of the house upon its purchase. As everyone knows that purchasing a house is a gigantic venture in terms of house down payment, and it is vital to have a full knowledge of everything that involves in it. So, this calculator could be of great use in providing an expansive look at his monthly loan payments. It could be used as an amortization calculator and this great article from OnQFinancial on calculating your mortgage.
The amortization calculator demonstrates the homeowners’ breakdown of his monthly repayments loan until such time the balance is fully paid. On the other hand, mortgage calculator helps in calculating the probable monthly loan payments so that the homeowner could prepare for his obligations.
To aid the clients in using this calculator more completely, the consultant of On Finance explained each input and output of calculator as follows
- Home Price- this refers to the purchase price of the house the client is buying.
- Down Payment- is the amount of money the client gives towards his loan upon closing the house. The rest of the payment on clients home comes from his loan.
Down payments are pointed out by percentage. A down payment of a minimum of 20 percent in order to avoid loan insurance.
- Mortgage Term- this refers to the period of time the client wants to make payments on his loan. If the homeowner chooses a longer term, it simply means fewer monthly payments, but with more interest paid over time.
- Interest Rate- the loan interest amount is the interest the homeowner pays on the outstanding balance of his loan.
- Annual Property Tax- refers to the percentage of tax the homeowner must pay based on the financial value of his home. The average property tax rate change depending on what state or what country the client is living.
- Annual Homeowner Insurance- refers to the monthly premium the client might be paying for his home insurance. But there are cases, homeowner’s insurance is no longer required.
In what way homeowners insurances calculated?
The amount of homeowner’s insurance depends greatly on his place of residence. Yearly homeowner’s insurance is estimated roughly by .35% of the home’s value but could be changed depending on the insured. The monthly installment fee shown are an entire expected monthly bill based on your loan information. It comprises paying down the outstanding amount the homeowner borrowed. The interest on that appropriated amount and an estimate of what the homeowner might be anticipated to pay for other house-related expenses which are considered compulsory including property taxes, homeowner’s insurance, and mortgage insurance.