The Mortgage Calculator provides you with a projected mortgage payment per month. These figures are based on the information you provide. As you can see you are allowed to enter the basic home loan amount, the interest rate, and the number of years you plan to finance it. The calculator then processes these amounts to arrive at your projected monthly payment. The monthly payment amount appears within the box next to its label providing you with a projection that allows you to make adjustments where needed.
This calculator allows you to determine whether you could afford a home mortgage of this size based on your monthly income. You may also enter different values related to potential mortgages to determine which interest rate and/or monthly payment is right for you and your family. This concept prevents you from falling into the home loan trap where lenders allow you to acquire a mortgage based on your good credit and not the amount you could actually afford. By utilizing the home loan calculator you have a competitive edge and understand what you are really getting into before you apply or accept a home loan. It also prevents you from exceeding your monthly budget for housing without the potential for mortgage default.