Mortgage calculators are online tools that can help you save a lot of money on your home loan. Some free mortgage calculators are simple – just enter your mortgage amount, loan duration, and interest rate to get a general idea of what your monthly payments will be. Others give you a lot more information, but require you to enter a lot more details about your loan. Here are some good reasons to use one of these free online tools for your Canadian mortgage.
1. Use mortgage calculators to decide how long to pay off your loan. When you enter your information, the calculator will show you how much you will pay in interest over the life of your mortgage. The longer your mortgage pays off, the more you will pay in interest. As you use the calculator, you can change the length of your mortgage to determine what will result in payments you can afford and having a mortgage for the shortest time possible.
2. Use one of these free mortgage calculators to help you choose between a fixed or variable rate. While a fixed rate may be better for you if you don’t like any risk at all, a variable rate tends, when used responsibly, to make more of your payments go against the principle of the loan and result in you are free from a mortgage faster than a fixed rate mortgage. By using a calculator, you can decide whether you want to go for a fixed rate or a variable rate.
3. Use one of the online mortgage calculators to prepare for the mortgage application process. Using one of these free calculators, you can find out how much you can actually afford (and how much lenders will allow you to borrow), whether fixed or variable rate is better, and how to pay off your mortgage early. It is important to be informed about this important financial decision you are making.
4. Use mortgage calculators to compare offers from different lenders. With all the different aspects of a mortgage (rate, duration, payment options, etc.), it can be difficult to determine which is the best deal. By using a calculator to help you with this decision, you can be sure you know exactly what the best deal is – there is no guesswork involved, just simple numbers.
In short, by using a mortgage calculator, you will be a more informed mortgage consumer. You will be more aware of your options and how small differences can make a big difference in how long you have a mortgage. Stay Informed and Mortgage Free Faster!