Identification

• When working with numbers that affect your mortgage, accuracy is essential. A home mortgage calculator, using the math capabilities of your computer, removes the potential for human error in performing calculations specific to the mortgage industry. Instead of collecting information and using sometimes very complicated mathematical formulas to get information on your own, you simply enter information specific to the calculation, click a button and let your computer do the work.
  
  

Types

• Most home mortgage calculators focus on one or two functions. As a result, there are varieties to choose from, depending on your needs. Examples include calculators that provide down payment, monthly payment and closing cost estimates. Others can create an amortization schedule, help you determine whether you qualify for a specific type of mortgage or help you select the right mortgage by performing mortgage comparisons. Two good places to look for a home mortgage calculator are bank and government websites (see Resources).
  
  

Requirements

• A home mortgage calculator is only as accurate as the information you enter. Depending on the type of calculator, this can include personal financial information, information about your current mortgage and current interest rate information. For example, if you are using a calculator to estimate monthly payments, you will need the mortgage amount, term of the loan, the interest rate and the start date. If you are using a calculator to decide whether you should refinance an existing mortgage, you will need information pertaining to your current mortgage, such as the origination month and year, as well as the amount, term of the loan and interest rate. In addition, you will need information on the new mortgage, including the amount, term of the loan, interest rate and an estimate of closing costs.
  
  

Considerations

• Although home mortgage calculators can produce fast and accurate results, they are not always easy to use. For example, a calculator that helps you determine whether buying or renting is the better idea provides valuable information, but requires detailed input and may become confusing. Whenever you use a home mortgage calculator, it is also a good idea to speak with your banker or lender, both to help you interpret and verify results.