Homeowners repeatedly request information about a home
mortgage refinance calculator.

What is a mortgage calculator? What does a mortgage loan
calculator do? Why is a mortgage payment calculator
different from a common calculator? How does a mortgage
home calculator work? Who benefits from a mortgage
amortization calculator?

Keep reading. At the conclusion of this article I am going
to reveal a secret that could save you more than $100,000.

Here are the basics to consider.

In its simplest terms a mortgage is simply a loan secured
by real estate. After the last payment from the homeowner,
the property is free of encumbrance.

Refinancing and home purchase mortgages are charged
interest by the lending institution. Usually this interest
is expressed as a percent such a 5% per year (annually).

Mortgage interest can be paid many different ways such as
interest only payments in which the borrower pays only the
interest but reduces none of the principal until a later
date. Principal means the face amount of the mortgage loan
or the amount left owing.

Most home mortgage loans in the United States are
amortized. That is why many borrowers are frustrated when
they try to figure monthly house payments with a common
calculator.

Amortization is simply a way of reducing a mortgage debt
through monthly payments of principal and interest. That's
why a mortgage home calculator should actually be called an
amortization calculator.

A mortgage amortization calculator can tell you what your
monthly payment will be if you know three things.

First you must know the term of the loan. Term refers to
the period of time required to pay off the loan, for
example 30 years, 15 years, or 40 years.

Second you must know the annual interest rate required to
borrow on your mortgage. This is sometimes called the
nominal rate (named rate) and is the not the same as APR
(annual percentage rate).

Third you must know the principal or in plain language the
amount of money you want to borrow.

If you know these three things you can solve for PI. "P"
stands for principal and "I" stands for interest. PI is
normally expressed as a monthly mortgage payment of
principal and interest.

As long as you have at least 3 out of 4 factors (term,
interest rate, principal, payment) you can solve for the
remaining factor.

Some online mortgage home calculators allow you to also
view and even print out an amortization schedule. An
amortization schedule is simply a spread sheet showing
monthly and/or annual payments. You can even see how much
interest is being paid each month and the amount of
principal you are paying down.

Did you recall my promise to share a secret with you? Here
it is!

When you make your mortgage payment, it isn't divided up
equally between principal and interest. In the beginning of
the mortgage term, a home owner pays far more in interest.
Very little of the original loan amount is reduced.

That is why borrowers feel disappointed when they look at
their statements in the early years of the loan. But
amortization used the right way can be beneficial.

By simply paying a few more dollars toward principal each
month in addition to the normal principal and interest
payment, you can dramatically decrease the balance on your
mortgage. This process can knock years or even decades off
the term of your loan.

What you get in return can often mean an interest savings
of hundreds of thousands of dollars.

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Kate Ford of Get-Your-Best-Mortgage-Rate.com agrees with
you about mortgage financing. It's become too complicated.
You need mortgage solutions. For down to earth answers in
real-time, ask Kate at =>
http://www.get-your-best-mortgage-rate.com

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