Mortgage Calculator

Most people make use of the Colorado Springs mortgage calculator to evaluate the payment on a new mortgage. However, it can also be utilized for other purposes. This tool can help visualize how a mortgage can fit into the current budget and whether or not the client can afford the repayments comfortably. Here are some of the other ways on how to use a Colorado Springs Mortgage Calculator. 

Alternative Usage number 1: Paying off the mortgage early 

By the times a thirty-year fixed-rate mortgage already paid off, the usual mortgage holder must make a total interest payment that is significantly larger than the headmost principal on loan. In order to find out how the client can shorten the term and significant net savings, use the ‘extra payments’ functionality. Paying extra money to the loan’s principal every month, or even just once, can help in shortening the clients’ term. 

In calculating the savings, enter the notional amount into one of the payment categories. Either monthly, yearly, or even just once, click the “Show or Recalculate Amortization Table” to see how much interest you will pay and also includes the new payoff date. 

Alternative Usage number 2: Take into consideration if an Adjustable-rate Mortgage or ARM is worth the risk 

Many clients are tempted with the lower initial interest rate of an adjustable-rate mortgage or also known as ARM. However, while an Adjustable-rate mortgage is appropriate for some clients, others may think that the lower initial interest rate won’t help in cutting their monthly payments as much as they imagine. To have an idea about how much you need to save initially, entering the ARM interest rate into the Colorado Springs Mortgage Calculator is required in leaving the term as thirty years. Afterward, make a comparison. Compare those payments to the payments the client gets when entering the rate for a stock and ordinary thirty-year fixed mortgage. Doing this may validate the client’s initial hopes regarding the Adjustable-rate Mortgage benefits or give a reality check about whether the potential addition of an Adjustable-rate Mortgage can outweigh the risks. 

Alternative Usage number 3: Finding out when to get rid of the private mortgage insurance

Colorado Springs mortgage calculator can find out when to make clear of private mortgage insurance. The client can use the Colorado Springs mortgage calculator in determining when the client will have the twenty percent equity in the home. The percentage of twenty serves as the magic number for asking that a lender waves private mortgage insurance requirement. 

Type or enter the original amount of the mortgage and the date closed. Then, click “Show or Recalculate Amortization Table.” Afterward, multiply the original mortgage amount by zero point eight or 0.8 and make sure that the result corresponds to the closest number on the far-right column of the amortization table to find out when the client will reach twenty percent neutrality.