| A Mortgage Calculator and Mortgage Audit Software | | | | concern is the risk of being infected with a virus or |
| (also known as a Mortgage Error Calculator) are great | | | | spyware. As with any download, it is best to source it |
| tools to help you save thousands off your mortgage, | | | | from a reliable web site and to virus check it before |
| both during the planning phase and over the life of your | | | | using it. |
| mortgage loan. But what is a mortgage calculator and | | | | Apart from the above warnings, the choice of using an |
| what can it do for you? Do you need a mortgage | | | | online mortgage calculator and/or downloadable |
| error calculator as well? This article compares | | | | mortgage calculator is a personal one. You can get |
| mortgage calculators and mortgage audit software, | | | | started with online calculators straight away, whilst |
| when to use them and how each can save you | | | | downloadable calculators take a little more effort to |
| thousands. | | | | set up. However, if you can see yourself using one |
| Mortgage Calculator - What Is It and What Can it | | | | often over the coming weeks, then the additional set |
| Calculate? | | | | up effort will pay-off. |
| If you are currently shopping around for a mortgage, | | | | Mortgage Calculator - What It Isn't and What It Can't |
| you've probably found out by now that they come in | | | | Calculate |
| all shapes and sizes. Interest rates that can be variable | | | | A mortgage calculator does have its limits. Once you |
| or fixed, loan terms ranging from a few years to 30 | | | | have signed up for the mortgage of your choice, and |
| years (even 40 years in some cases), options of | | | | start the long journey of repaying it, then a mortgage |
| repaying monthly or bi-weekly and more fees and | | | | calculator becomes less useful. |
| clauses than you can poke a stick at. To make | | | | For example, the mortgage calculator amortization |
| matters worse, just to calculate the amount you can | | | | tables (listing all your loan repayment amounts, broken |
| borrow, your repayment amounts and the total cost of | | | | into interest and principal amounts) are useful when |
| the loan, you need to plug all these numbers into some | | | | you start out, but soon become obsolete if interest |
| pretty ugly financial formulas. | | | | rates change, or you start making additional |
| A mortgage calculator is designed to do all the | | | | repayments. |
| complex calculations for you. By entering your income | | | | This is because a mortgage calculator is designed to |
| and living expenses, you can calculate the repayment | | | | estimate future values, providing you with information |
| amount you can afford each month, and from this you | | | | so that you can make decisions (eg choosing the right |
| can calculate the total mortgage loan amount you can | | | | mortgage). Unfortunately, it's not so good at helping |
| afford. | | | | you track the repayments on your own mortgage, or |
| A mortgage calculator is also great for comparing | | | | providing you with summary information as to how |
| different loans with different fees and interest rates, as | | | | much your loan is actually costing you. Most |
| it lets you see the true cost of each loan. You enter in | | | | importantly, it won't provide you with tools to check |
| all the relevant information and it calculates expected | | | | your mortgage statements for bank errors, or protect |
| repayment amounts, amortization schedules and the | | | | the thousands you pay in interest each year from |
| total cost to you. | | | | lender mistakes. |
| For example, assume you are looking for a mortgage | | | | Therefore, once you start the repayments on your |
| for 150,000 over 30 years. Bank A is offering you an | | | | loan you need a tool that will help you track your |
| interest rate or 6.9% with no upfront fees, and bank B | | | | mortgage. You don't want to be working with |
| is offering you and interest rate of 6.7% with 750 of | | | | estimates, you want to be dealing with the actual |
| establishment fees. Which is the cheaper option over | | | | figures. |
| the life of the mortgage? | | | | Mortgage Calculator vs Mortgage Audit Software |
| Bank A (at 6.9%) will end up charging you 205,644 in | | | | If you have a mortgage, or are about to sign up for |
| interest payments over the 30 years, and bank B (at | | | | one, then it is time to switch from a mortgage |
| 6.7%) will charge you 198,451 in interest payments plus | | | | calculator to mortgage audit software (also known as |
| the 750 upfront fee (a total charge of 199,201). Despite | | | | a mortgage error calculator). Mortgage audit software |
| bank A being over 6,400 more expensive than bank B | | | | helps you check your statements for errors and |
| (205,644 compared to 199,201), many people still go | | | | allows you to manage your mortgage over the life of |
| with bank A to avoid the upfront fees. | | | | the loan. You simply type in (or import) your mortgage |
| It's worth remembering that when dealing with | | | | loan information, statements, transactions and interest |
| mortgages, the smallest change in interest rates can | | | | rate changes, and the software does the rest. |
| make a big difference to the total amount you end up | | | | Mortgage audit software is designed to help you: |
| paying. A mortgage calculator can help you calculate | | | | Track your mortgage repayments over the life of your |
| the true cost of a mortgage before you sign up with a | | | | loan. |
| lender. | | | | Check your mortgage statements for bank errors and |
| If you are currently looking for a mortgage, want to | | | | lender mistakes. |
| know how much you can borrow, and which | | | | Calculate your expected refunds from any bank |
| mortgage is the best deal for you, a mortgage | | | | errors. |
| calculator can save you thousands by helping you | | | | Check you are receiving the full benefit from your |
| chose the right mortgage. | | | | offset account. |
| Mortgage Calculator - Online or Software Download | | | | Calculate how much your mortgage is costing you |
| There are two main types of mortgage calculators, | | | | each year, broken down by interest payments, fees, |
| the ones that you use online over the Internet, and | | | | deposits and withdrawals. |
| those you download and run on your own computer. | | | | Compare mortgage costs from year to year and |
| Most banks and mortgage lender websites provide | | | | statement to statement. |
| some sort of free mortgage calculator to help you | | | | Gain insight into your bank's calculations, by providing |
| calculate how much you can borrow. Some provide | | | | you with the daily breakdown of your mortgage |
| additional calculators that produce amortization | | | | interest charges and calculations. |
| schedules, monthly and bi-weekly repayments | | | | Calculate and plan for changes to your repayment |
| schedules, prepayment calculators and more. | | | | amounts due to interest rate rises. |
| A word of caution with online mortgage calculators. | | | | Repay your mortgage earlier by providing you with up |
| The information you are providing may be recorded | | | | to date estimates of the amount to increase your |
| and used for marketing purposes, so be careful how | | | | repayments by, to meet you early repayment goals. |
| much personal information you enter. If you have to | | | | Guard against bank errors and protect the thousands |
| type in an email address, phone number or street | | | | you pay in interest over the life of your loan. |
| address just to use the calculator, then you may find | | | | In summary, mortgage audit software can help you |
| yourself on the receiving end of a sales pitch. Try to | | | | avoid expensive mistakes. An undetected error will |
| find a mortgage calculator that allows you to enter | | | | compound over the life of your mortgage and could |
| financial details (eg how much you want to borrow, | | | | end up costing you thousands. |
| interest rates, etc) without having to enter any | | | | Mortgage Calculator and Mortgage Audit Software - |
| personal details (eg name, address, email, phone | | | | What Next? |
| numbers, etc). | | | | If you are currently searching around for a mortgage, |
| The other limitation of online mortgage calculators is | | | | then a mortgage calculator is a good option to help |
| that they don't let you save your calculations. | | | | you compare mortgages. If you already have a |
| Therefore, if you are trying to compare multiple | | | | mortgage, then you should download a mortgage audit |
| mortgage loans over a period of time, it can become a | | | | software package, check your statements for lender |
| little cumbersome having to re-enter the same | | | | mistakes, and use the software to help stay in control |
| information over and over. | | | | of your loans. |
| With downloadable mortgage calculators, the main | | | | |