Many years ago when interest rates seemed to be declining almost every day, I attempted to determine the exact point I could benefit from refinancing my home mortgage. At first I search the internet for a mortgage calculator that could aid me in my decision, but to my disappointment I discovered that they all lacked the sophistication necessary to be of much use.
In fact they were so seriously lacking in their complexity that they were nearly financially ineffectual. So after frustratingly realizing I was not going to find what I needed, I decided to build my own mortgage calculators and in 2005 I transferred them to a browser format making them available to the general public. You can try my mortgage calculators at .
Determining the economic benefits of refinancing depends on many factors, i.e. 1) what is the rate on your existing loan, 2) what is the current rate at which you can refinance, 3) what will it cost you to refinance, 4) how long do you expect to hold the property hence hold the loan, and 5) what is the time value of money. RealEstate-Calc.com can help guide you through a in the application of these variables.
When creating any financial calculator or model there is a trade off between complexity and simplicity versus effectual and ineffectual and striking the right balance is the key to being a good analyst. "Mathematical modeling", "manipulation of numeric data" and "displaying numeric results" are all part of an art form! To think otherwise would produce less than superior results.
Most mortgage calculators leave out the ability for the user to adjust for how long they expect to hold the loan and none that I know of allow the user to adjust for the time value of money. Most do not allow the user to adjust for a mortgage that has already been amortizing for a significant period of time.
These are important variables if you desire more accurate results than the typical mortgage calculator provides. My mortgage calculators will allow you to adjust for how long you expect to hold a loan (live in the property) and you can adjust for a mortgage that has already been significantly paid down. You can also consider the effects of making an additional fixed monthly payment to your mortgage.
There are more types of calculators than just mortgage calculators. There are real estate calculators that can assist you in determining the cost of buying, selling and holding real estate. They can help you determine the tax consequences of selling a single family or multi family property which is either investment property or primary residential property.
There are business plan calculators. These types of calculators are useful for those interested in starting a small business. No business plan can be complete without a financial forecast and numeric framework. Many people considering starting a small business prefer to overlook the utility of a business plan, however those that require funding through more conventional sources often are required to have some type of minimum financial plan in hand.
How do I do it? I combine 20 years of experience as an analyst on Wall Street with the following skill sets: coding in visual basic, yield curve construction, financial statement preparation, business plan development, complex derivative valuation, and risk management.
If you are thinking about buying a new home, there are so many financial details to consider. What will the payment be? How much can you save if you make additional payments or go to a bi-weekly mortgage payment? How much money will you need to earn each month in order to afford your dream house? Instead of guessing, you can use a mortgage calculator to help you determine the answers to these important financial questions.
Time is money, and if you make extra payments on your home loan you can pay it off faster and save money over the life of the loan. An online mortgage calculator can help you figure how paying different extra amounts each month will shorten the loan's term and reduce the amount of interest you will pay.
You can calculate mortgage payments for a home you wish to buy. Simply put in the loan amount, the interest rate and the term of the loan, and the online calculator will figure it out for you. In this way, if you are looking at more than one home, you can compare what the payments would be and then make a more informed decision to help you narrow down your search for a new home.
You also have to determine how much home you can afford. When you plug the house payment amount, along with other expenses you have, into a free mortgage calculator, you will get your answer. You want to buy as much house as possible, but only as much as you can comfortably afford, and this tool is a great way to discover how much that will take.
Banks will tell you how much you can borrow when you want to purchase a new home. It is helpful, however, to plug your numbers into a home mortgage calculator, so you will have an idea in advance of what to expect.
Discount points are an option when you are looking at a new home loan. By using an online calculator, you can fill in the blanks for the interest rate and the rate with discount points, and let it calculate mortgage payments for you to see how they compare.
Everybody wants to save money when it comes to home financing, and it can be a good time to consider refinancing your home loan. But you will be faced with paying fees for the refinance, so you need to determine if a refinance will be worthwhile. Home mortgage calculators can be very useful for this purpose. Another benefit to home ownership is your tax deduction you get for the home while you are paying it off, so use an online calculator to estimate how much you can expect to save.
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