Mortgage repayment calculator : Overview

Mortgage calculators are an indispensable tool in the homebuyer's armoury. They prove an easy way to help borrowers assess their financial situation and calculate what their monthly outgoings are likely to be. Mortgage calculators come in all shapes and sizes, but they basically answer one of two questions: How much can I borrow? and What will my monthly repayments be?

For an online calculator see:
http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

Mortgage loan calculators : Prospective buyers can find themselves in a catch 22 situation when they first set out house hunting. On one hand they can't begin looking for a property until they know their budget, and on the other they find mortgage providers unwilling to talk until they have a definite purchase in mind. One way out of this financial quandary is to seek out an online mortgage loan calculator. Once you've got a ballpark figure you'll then be in a better position to begin scouring the local papers and estate agent windows to find a suitable property.

It's important to remember that mortgage loan calculators only give you a rough idea of borrowing. A common fault is that they overlook how much deposit you are able to put down, and bigger deposits tend to mean proportionally bigger loans. As a rule of thumb mortgage providers will offer 3.5x the salary of a single applicant, while joint mortgage applicants can expect either 3x the highest salary plus 1x the lowest salary, or 2.5x the combined salary.

Mortgage repayment calculators : A quick way to work out how much your mortgage will cost you every month or to see how switching interest rates (remortgaging) will affect your financial standing. Monthly repayments are calculated by typing in the amount you are borrowing, the remaining term and the interest rate. Anyone who has taken out an interest only mortgage will have a much more difficult time finding out where they stand because their mortgage balance is dependant on how their additional investment (whether it be an endowment, ISA or pension) is performing.

© AskFinancially.com 2008

Repayment Mortgage

Ask About

> Repayment Mortgages UK
> Mortgage Insurance
> Mortgage Rates UK
> Mortgage Repayment Calculator