Using a Mortgage Insurance Calculator

Using a Mortgage Insurance Calculator

Share
Using a Mortgage Insurance Calculator
A mortgage calculator is a beneficial resource that allows a prospective homeowner or a homeowner looking to refinance with the ability to view their monthly payments given a set of variables. The problem with a generic mortgage calculator, however, is that the tool only accounts for the basic variables of a mortgage agreement--I.E. the property's value, the length of the loan, the amount of the down payment, and the interest rate associated with the agreement. 
 
 
The basic mortgage calculators do not incorporate mandatory payments that although are not attached to the mortgage itself, are still costs that a homeowner must pay. Property taxes and insurance on the property are two examples of necessary costs that are commonly left out of the mortgage calculator. 
 
 
That being said, there are multiple mortgage calculations that do incorporate these added costs into one's overall monthly payment. The mortgage insurance calculator for instance, is a tool that not only measures a home owner's monthly mortgage payment, but also incorporates the amount of insurance that the individual pays on their property.
 
 
The mortgage insurance calculator looks similar to the generic mortgage calculator, with only a few slight variations added in. The mortgage insurance calculator will ask generic questions concerning your mortgage such as: the length of your loan, the interest rate attached to the loan, and the amount of the loan. 
 
 
Once these figures are entered, the individual will then record his or her annual tax rate and the annual insurance associated with their property. Once all the fields are completed the individual can execute the mortgage calculations. 
 
 
The mortgage insurance calculator will then tabulate the figures and offer the individual with their combined monthly amount of principal and interest, their property taxes, their homeowners’ insurance payments, and the total mortgage calculations associated with these costs.

Comments

comments

Share

Related Articles


Read previous post:
Why are Mortgage Rates Important?

Close