Once you’re coming to purchase a home, property or commercial building, you may want to calculate the exact sum that you can expect to be offered from your bank; or figure out the kind of repayments that you will make on your mortgage over a certain period of time.
Using a mortgage calculator can allow you to enter your own personal details and receive a tailored summary based on the values that you input. The mortgage calculator can give you details on the monthly cost based on the mortgage amount, along with the interest rate being offered to you from your lender.
How do I calculate my mortgage repayments?
You can easily calculate your mortgage repayments online using this simple tool. The process will be much faster if you have the interest rate to hand, along with the fees to take out the initial mortgage and the type of mortgage that you’re interested in.
There are two types of mortgage as shown below:
- Repayment mortgage – This is the most common type of mortgage, also known as capital repayment, and works by making monthly payments (plus interest) to your lender. At the end of the term, you will not owe any more money.
- Interest only mortgage – This is where you only pay the interest of the initial sum, and you will still owe the initial sum at the end of the mortgage term.
You can use a mortgage repayment calculator for either of these types, meaning that you can clearly view your property finances at any given time.
Mortgage overpayment calculator
Once you’ve decided on your mortgage type and have been regularly taking large chunks off the amount you borrowed, you may find yourself able to afford larger payments than you originally planned.
Overpaying your mortgage allows you to pay off your debt early, which will shorten the mortgage term instead of reduce your monthly payments.
In the overpayment mortgage calculator, it’s important to select the type of mortgage that you have, along with the overpayments that you’re planning. These can be one-off or recurring payments to reduce the duration, and the mortgage overpayment calculator will be able to estimate when the debt will be completely paid-off.
If you’re coming to the end of your mortgage term and are looking for a tool that can help to figure out which deal is best, you may want to look at a remortgage calculator. This type of software allows you to view your monthly repayments once you’ve decided on a new lender, and see the duration in which you should expect to be debt-free.
Because a buy-to-let mortgage is different to an interest-only or repayment contract, you will need to use a buy-to-let mortgage calculator to view the expected monthly payments on your property.
You will need to enter your estimated monthly rental income along with the value of the property in order to view the details of your agreement.
As you can see, using a mortgage calculator is extremely valuable for any homeowner or person looking to purchase a new property. Allowing you to be clear on your payments and view how strong you will be financially when the mortgage is taken out, it’s good to understand the remortgage and overpayments that you should expect to see.