A mortgage insurance calculator is a device that you can rely on to estimate any payment related with the insurance. This estimation tool is usually free and can be found easily on the net.
However, to name it “estimation tool” means that the result of the device cannot be taken as a quote. Since each insurance provider may have different terms and condition, there are some determining factors which cannot be made available on the online mortgage insurance calculator.
Types
The benefits of using a mortgage insurance calculator depend on which type of device you use. Knowing each function of the device will give you the idea of the benefits of using the tools. Here we will discuss several types of them.
· Basic Repayment Calculator
This device will help you estimate the amount of payment you should make, taking into account the sum of the loan, the interest rate and the length of loan repayment.
By placing the above mentioned elements, this first type of mortgage insurance calculator will show you the list of repayment plans you can choose from; monthly, weekly, or fortnightly. The result will also show you the estimated amount of repayment as well as the interest to be paid.
· Loan Qualification Calculator
The second type of mortgage insurance calculator is the loan qualification calculator. This tool will show how lenders might view your qualification in terms of your applying for loans.
The calculator will ask your income as well as other elements that may affect your economic condition such as credit card, car and other loan payments.
· Loan Comparison Calculator
While finding the best price for your credit is important, loan comparison calculators come as a part of the mortgage insurance calculator’s family. This calculator will compare two or multiple home loans by considering some determining factors you put into it.
In this category, there is a calculator that compares the interest cost of a fixed rate and an adjustable rate mortgage. This device will help you decide which type of rate is best for you, considering your financial condition.
· Debt Consolidation Calculator
The fourth type of mortgage insurance calculator will help you decide whether you should merge your debt (cards, automobile, etc) with the second mortgage or not. The first mortgage will not be affected unless you also include it in calculation (which requires a bit complicated formula).
In addition, this calculator will also predict the length of time you need to break even the costs.
· Estimated Loan Calculator
Using this type of mortgage insurance calculator, you will know how much money you can borrow from a lender. Details required to fill out the calculator involve annual income, monthly expenses, whether you borrow solely on your own, and some information about credit card payments and dependants (kids, etc).
This calculator will show you your borrowing power as the sum of money to be borrowed may vary among lenders. Knowing how much loan you should take will help you choose the right provider, offering the right cost and policy.