Mortgage calculators can be used to calculate the interest on mortgages, calculate monthly mortgage payments and learn other important information about mortgage payment options. They are important tools for mortgage companies, and you should use them when your clients are applying for a mortgage or refinancing their current mortgage. By using mortgage calculators, you can show your clients exactly what they'll be dealing with when they are buying or refinancing their home. Using mortgage calculators will help you put these numbers together for your clients.

There are many financial calculators available to help you calculate mortgages, and you'll want to know how to use certain ones.

1. Use a mortgage loan calculator to calculate mortgage payments.

2. Use a mortgage rate calculator to find out your clients' current interest a mortgage.

3. Use a loan payment calculator to find out what your clients' monthly mortgage payments will be.

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Use mortgage loan calculators to calculate mortgage payments

Calculating a mortgage loan will help you know exactly what your clients' interest will be, what their monthly payments will be and what their interest can go up to in the future. You'll want to be sure you know how to use mortgage loan calculators to calculate these numbers, and find the best mortgages for your clients.

I recommend: Home Buying Q&A provides instructions for using a mortgage loan payment calculator. Interest.com explains what different mortgage calculators are for.

Find interest rates using a mortgage rate calculator

One of the most important number you'll want to know about your clients' mortgages is the interest rate. Interest rates change as the years go by, and you'll want to be able to give your clients the current interest rate they are paying on their mortgages. By learning how to use a mortgage rate calculator, you can show your clients what their current interest rate is on their mortgages.

I recommend: Life Tips provides advice on how to use mortgage calculators to keep up with rate changes. Home Ownership Preparation provides helpful information on using mortgage rate calculators.

Calculate monthly mortgage payments using a loan payment calculator

Along with the current interest rate on your clients' mortgages, you'll also want to provide your clients with the exact amount of their monthly mortgage payments. You can provide this information to them by using a loan payment calculator. By learning how to use these calculators, you'll be able to provide your clients with one of the most important monthly payment amount they'll be paying.

I recommend: MortgageLoan.com explains how to use their mortgage payment calculator, and what you would use it for. Ezine Articles offers tips on how to find and use an online loan payment calculator.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You should also learn how to use business mortgage calculators for customers who have a mortgage through you for their business.

Mortgage calculators are an available way to determine how much house a customer can afford, how much a monthly payment will be, and the amount of interest saved by financing for 15 as opposed to 30 years.

For a business, use mortgage calculators as part of the business plan when presenting expected expenses to potential investors.

Mortgage professionals have a variety of financial calculators available, and by using them to provide information to potential customers you increase satisfaction as well as the likelihood of closing a loan.

Use a mortgage rate calculator to:

1. Show prospective borrowers a variety of loan options, including fixed and adjustable rate scenarios.
2. Print an amortization table to show the borrower the amount of each monthly payment that goes to the principle and how much to the interest.
3. Show the borrower the maximum amount they can borrow, as well as their monthly payment for that amount.

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Reduce unnecessary paperwork by using mortgage calculators

A formal loan application triggers a great deal of mandatory paperwork. For the customer in the early stages of home buying, a mortgage calculator provides the information they need.

I recommend: Use mortgage rate calculators, such as those at Bankrate.com to determine the interest of your borrowers and provide them with basic information about how much money they can borrow. Detailed calculators allow you to tell the borrower how much they can lower their payment by saving for a larger down payment, how much they save in interest by making additional payments on the principle and other information that the nervous buyer finds reassuring.

Stay in compliance by keeping the loan process organized

Once the loan process begins, there are a variety of forms to fill out and financial information to sort through. Mortgage professionals are highly regulated.

I recommend: Calyx Software offers an inclusive software package that includes a variety of financial calculators, credit analysis worksheets, disclosure forms, conversation logs and all of the other forms and documents that are necessary to successfully shepherd a loan from first contact to closing.

Prevent the loss of a customer by using mortgage calculators

Many home buyers, particularly first time buyers, approach mortgage companies with only the vaguest idea of how much home they can afford. They are more likely to know how much of a monthly payment they are willing to take on.

I recommend: Use a mortgage rate calculator that allows you to enter the amount of the monthly payment your clients can pay and the amount of money they have to put down to come up with the amount of home they can afford. CCH offers a wide range of calculators to answer specific mortgage questions, including renting vs. buying.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Use mortgage loan calculators to show borrowers how much they save by eliminating the need for PMI insurance.
• •  When calculating a mortgage loan, provide your clients with a full range of financial options. Knowing how much they save in interest by financing for a shorter term or how much their payment will increase with an adjustable rate mortgage provides them with the information they need to make the best financial choice.
• •  Whether for a home or business mortgage, calculators are only one part of the sales equation. Closing on a loan is as much about your sales ability as it is the buyer's ability to pay. Use a mortgage rate calculator as a tool to provide excellent customer service.

There are many different financial calculators available for businesses to use. The most important calculators a real estate business will use are mortgage loan calculators. There are many different mortgage calculators available on the web, and you'll want to know which ones you should use when calculating mortgage payments and interest for your clients. By finding a good selection of mortgage calculators on the Internet, you can be sure you are making the most of mortgage calculators for your clients.

The two main mortgage calculators you'll use in your real estate business are loan payment calculators and mortgage rate calculators. If your company handles commercial real estate clients, you'll also want to utilize business mortgage calculators.

1. Calculate monthly mortgage payments with a loan payment calculator.

2. Determine the type of loan you should apply for with a mortgage rate calculator.

3. Find out how much a mortgage will cost your business each month with a business mortgage calculator.

Action Steps
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Find loan payment calculators on the Internet

One of the biggest questions your customers will have when applying for their mortgages is what their monthly payments will be. By using a loan payment calculator on the Internet, you can show them exactly what their monthly payments will be before they apply for the mortgage, based on their loan amount, interest rate and length of their mortgage.

I recommend: Move offers a free online mortgage payment calculator. Bankrate.com allows you to calculate your monthly mortgage payment.

Find mortgage rate calculators on the Internet

Your clients will also want to know how much interest they are paying on their mortgage, and where they can get the best interest rate from. By using mortgage rate calculators on the Internet, you can help them find the best interest rate for them, and compare monthly payments based on their interest rate. You can also use these calculators to determine what type of interest will be best for them.

I recommend: Interest.com allows you to calculate and compare monthly mortgage payments for an adjustable rate mortgage, fixed rate mortgage and interest-only loan. Mortgage101.com allows you to calculate the interest on your mortgage.

Find business mortgage calculators on the Internet

A business' office mortgage is one of the most important business payments your clients will make every month. Business owners can track these payments, and determine what future payments will be, by using a business mortgage calculator. These calculators can help you generate an amortization table for your client, which will detail each periodic mortgage payment.

I recommend: Dinkytown.net offers a fixed mortgage loan calculator that allows you to generate an amortization table for your business client. Mortgage-X breaks down the mortgage month-by-month.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure you keep track of all of the numbers when calculating a mortgage loan for your clients.

Mortgage calculators play an important part of the American and world economies. By inputting several basic numbers into a mortgage calculator, a borrower can determine affordability and purchasing power.

However, unless you've worked with mortgage calculators on a regular basis, some of the terms you come across can be quite confusing. Here are some terms commonly found on mortgage calculators so you'll be ready to determine the purchasing power for your business location.

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Adjustable rate mortgage

An adjustable rate mortgage is a mortgage in which the interest rate can change throughout the duration of the loan. Certain mortgage calculators specialize in the calculation of payments for adjustable rate mortgages.

I recommend: Visit the website for the Mortgage Professor for additional information on adjustable rate mortgages.

Annual percentage rate (APR)

The annual percentage rate, or APR, refers to the actual interest the borrower is paying for a loan inclusive of certain fees. For instance, the APR might be 5%, but if closing costs or other processing fees are rolled into the loan, the APR might actually be 5.25%.

I recommend: Visit the website for The Mortgage Insider, which has articles on many terms found on mortgage calculators including annual percentage rate.

Bi-weekly payment

A bi-weekly payment calculator refers to a mortgage calculator that applies payments every two weeks to a borrower's mortgage. Each bi-weekly payment is usually half of the normal monthly payment.

I recommend: The website for GMAC Mortgage provides a bi-weekly payment calculator service.

Mortgage points

Mortgage points refer to an amount of money that is paid during closing and reduces your monthly payment over the life of the loan. Many people compare and contrast different loan programs by using a calculator that allows one to input mortgage points.

I recommend: Visit the website for Bank Rate for more information on mortgage points.

Private mortgage insurance (PMI)

Private mortgage insurance, or PMI, refers to an insurance which must be obtained by the buyer if they are placing less than 20% down on their home. Many mortgage calculators factor in PMI because it is a significant part of any potential monthly payment in terms of borrower affordability.

I recommend: Visit the website for the Money Cops for a glossary and informational articles on PMI.

Negative amortization (NegAm)

Negative amortization, or NegAm, refers to a loan that is actually increasing in value as the borrower makes their monthly payments. These are popular for teaser rate loans where a borrower pays a smaller monthly fee for a fixed period of time, and then readjusts the monthly payment. A negative amortization calculator will help determine the amount of additional debt that will be placed on the back of the loan.

I recommend: Visit MortgageLoan.com for an article explaining negative amortization as well as a corresponding calculator.