Will you need a Scientific Calculator online for Mortgage?

Probably, especially if you have a habit of looking at the latest Canadian mortgage rates on the market. A scientific calculator online can help you get your funds in order. You might have purchased a mortgage and think that you know everything there is to know about keeping it as an investment but that is hardly ever the case. Since, interest is compounded with every payment it is easy to see why you would think so.
Just because you know how to calculate loan and interest payments doesn't mean that you know how mortgages work. Fortunately, a scientific calculator online can help you separate the facts.

Will you need a Scientific Calculator online for Mortgage?

How? A scientific calculator online comes with functions that will make it possible for you to figure out complex calculations by using certain mathematical formulas. The website will then provide you with the monthly payment amount.
The fact that all mortgages are compounded on a semi annual basis by law is another reason why having a scientific calculator online on hand is a good idea. Here is what you will need it for -

Monthly Principle and Interest Payment
This denotes the amount of money that you will have to pay a lender (bank) in principle and interest payments on a monthly basis. The value will be the same for the life of your loan provided that the interest rate does not change. Just remember that this amount does not take insurance and property taxes into account.

Principle Payment
You can also include the figures from your principle payments into your scientific calculator online as well. In essence, this represents the amount that will go towards paying off your loan. In general, this should include a small portion of your monthly mortgage payments each month after you buy your home. It will also depend on the interest rate. In time, your principle payments will reduce the amount of the loan that you owe since you can then use more of your monthly payments to finally pay off all of it.

Mortgage Principle Reduction
As your principle goes down so will the amount of each of your monthly payments. This means that more funds from each month's payments will go towards your principle. Once the principle is reduced to zero, it will be called amortization.
If you are successful in paying off the principle amount before the term of the loan ends you will also manage to reduce the amount of interest on the loan.

Interest Payments
This is the fee that banks charge to let you borrow money. It makes up a portion of your monthly mortgage payments as well. You won't need to pay as much in interest right after you buy your home. However, a lot more of your monthly payments will go towards your principle amount in order to pay off your loan in full.

A scientific calculator online will have different slots for the amount that will go towards interest and the monthly mortgage payments that go towards reducing your principle balance. Here is what you can do to lower your principle mortgage payments -

Bi Weekly Payment
A lot of lenders offer bi-weekly payments for mortgage holders to pay off their loans. Before you use your scientific calculator online you can pay half of your mortgage payments after every two weeks. How early you want to pay it off will depend on how soon you plan to start on the program, the amount of interest rate and the amount of the loan. Also make sure that you ask for the fee that your specific lender will charge you for the bi-weekly plan. Different lenders offer varying rates. Your scientific calculator online will help you decide which lender's plan would suit your current situation the best.

Mortgage Interest Paid
You can use your scientific calculator online to compute the mortgage interest that you owe to your lender over the course of your mortgage. Check your loan papers to find your monthly mortgage payments. You will find the amount of the interest payment in the amortization schedule. You can then multiply the total amount of the monthly payments. Subtract the number that the scientific calculator online comes up with and you will be left with the total amount of interest payment that you will owe over the course of your mortgage.

As a Lump Sum
The earlier you make the payments on your principle, the more chances you have of reducing your interest payments to manageable levels.

Try to Pay More
Know what will help you get rid of your mortgage payments faster and make the best of your scientific calculator online ? Try to pay more. Use your scientific calculator online to add a principle payment here or there and watch the amount of your loan payments decrease before your very eyes.

You get a bonus if you pay a little more principle as well. The more you pay the less will you have to pay in interest. Round it off. For instance, if you owe $145 why not pay $150 instead? An extra few dollars a month will help you pay off your balance in a timely manner and get your mortgage payments off your hands.

Make sure that the extra you pay is applied to your principle loan balance. Do not only record the amount that you will have to pay for the next payment. Also make sure that you read the contract thoroughly. You do not want to find out that you owe penalties for prepayment as well.

Remember, the key to saving funds lies in finding ways to pay off your interest as soon as you can. If you think that your finances can help you pay off larger payments you can spend a less amount of time to pay off the total amount in full. In fact, it wouldn't be too far fetched to say that you could save thousands of dollars in payments if you use your scientific calculator online to take stock of your mortgage payments.

Blog July 17, 2013 admin No Comment(s)

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