A mortgage calculator can help you understand the amortization schedule that you agree to when you close your loan. Amortization is the process of repaying your loan through monthly payments of principal and interest. A mortgages calculator gives you an estimated monthly payment as will as estimates of the interest that will accrue. Mortgage calculators can also be used to see the effects of extra yearly payments and changes in interest rates or the length of the repayment period. Fill out our free short form to contact up to four lenders about your mortgage or use our mortgages calculator to get an estimate of your monthly payment.

Extra yearly payments affect the repayment schedule of your loan, but do so in a beneficial way. An extra yearly payment will allow you to save on interest payments and shave up to ten years off of your repayment term. Many mortgages calculators allow you to enter in extra yearly payments and show you just how much you can save by making such a payment. If you are interested in making an extra payment, it should either be factored into your agreement of repayment or discussed with your lender to ensure that there are no prepayment penalties for borrowers who pay off their loans early.

Mortgages calculators help you with the deciding on:

• the best term length
• the lowest amount necessary for your down payment in order to have the monthly payment you desire
• the highest interest rate you are willing to accept
• whether an extra yearly payment is worthwhile

The figures given by a mortgages calculator are estimates and are not to be trusted above information given to you by your lender. However, it is a great tool to use in mortgage planning. Discrepancies in figures given by a calculator from those given by your lender are usually due to differences in the processing of fractions of percents.