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Ontario mortgage calculators – Different Kinds for Different Needs


A mortgage calculator Canada Ontario is not a physical piece of equipment you can place before you like a regular calculator.  Rather it is an automated tool found online used for comparing different mortgage rates.  Since there are serious changes to your financial situation when you obtain a mortgage, it is important to find out what the exact implications are by using reliable Ontario mortgage calculators.  By finding out the exact risks involved in securing your home financing, you can make contingency arrangements.  However, this is only possible if you calculate different variables like income and expenses.  There are several kinds of Ontario mortgage calculators that you may want to consider utilizing depending on your situation.

A standard calculator, often referred to as a mortgage repayment calculator, is used online to determine what the monthly mortgage payments will be based on a given mortgage amount, term length and interest rate.  It is easy to use a standard mortgage calculator Canada Ontario.  You will need to enter in basic information about the loan, such as the principal loan balance, annual interest rate, and amortization length in years.  You can choose how much information is displayed upon the calculation of your loan.  You have the option of entering customized information like any prepayment amounts you plan to make before payments will be charged interest.

Next, there is something called an affordability calculator, also known as a budget calculator, that you can use to determine how large or grand of a home you can afford.  The information you enter here includes the desired mortgage you wish to obtain, the length of time in years that you are willing to pay the mortgage, the interest rates you have had quoted to you, and the annual property tax.  In addition to these items, a mortgage calculator Canada Ontario of this kind will ask you to enter in monthly expenditures like car payments, other loans, and credit card bills.  Based on all this information combined, you will receive a summary of your input in terms of what your monthly principle plus interest will be, your total monthly payments, and the salary required to meet these payments.  If you determine that your income is great enough, then you can assume that you will be able to afford the home you are looking into.

Another useful variety of Ontario mortgage calculators is an amortization calculator.  This is an intuitive calculator that allows you to see the change in principle balance as payments are made each month.  You can quickly determine how much you will owe on our home in a given number of years from now.  This mortgage calculator Canada Ontario also allows you to see how much of your monthly payment is actually going toward paying off the loan rather than simply paying interest.  As any broker can tell you, the payments at the outset of your loan will be going toward paying off the interest more than paying off the loan.  Lenders do this to ensure they profit from financing your purchase in case something occurs further down the road.

The bi-weekly mortgage calculator Canada Ontario is used to see how much you can save by making payments based on 28 days, or four weeks, rather than full 30 or 31-day months.  You might not think this could amount to much, but in the long run it certainly does.  You can also see what paying every two weeks looks like in terms of savings.  By using this process, you can often secure shortened term lengths, meaning you pay off your loan faster and become the sole owner of your home after a much shorter time span.  You do not pay more per month, but simply divide the total amount due into two separate payments.  The result is that you end up paying one extra mortgage payment per year without even noticing the difference in cash outflow.  However, what these kinds of Ontario mortgage calculators will reveal is that you end up paying your mortgage off ahead of schedule.

The interest only calculator is one that helps homebuyers calculate their monthly mortgage payments when they take out an interest only loan.  Did you know that this variety of loan can decrease your monthly payments by as much as 30%?  For this reason, interest only loans have become increasingly popular.  It also allows excited future homeowners to qualify for more expensive homes than they might normally be able to afford.  Consider that a 30-year interest only loan is comprised of 10 years of interest only payments and 20 years of original loan amortized payments.  The flexible calculator allows you to indicate what kinds of payments you are making, whether it is monthly, bi-weekly or weekly.

Another valuable variety of Ontario mortgage calculators is the refinance calculator.  This is important when you are deciding whether you want to refinance your current mortgage or not.  You may be able to obtain a lower interest rate by refinancing, but this calculator also helps determine what your new monthly costs will be, tells you what your net interest savings will be, and the point at which paying closing costs breaks even with what your old payments were.  You enter the same kind of information as with a standard mortgage calculator Canada Ontario, but you enter the information twice—once for the your current rates and payments and once for the new rates, payments and closing cost.  After this simple calculation, you will have an idea of how beneficial refinancing options are for you.

The best part about using Ontario mortgage calculators is that they take all kinds of variables into account to help you determine what your monthly mortgage payments will be, how large of a mortgage you can afford, how much of your payments go toward the principle each month, what you could save by switching to a bi-weekly payment plan and the savings you could experience with interest only loans or by refinancing your loan.  Investing a bit of time into these useful Ontario mortgage calculators will surely pay off.

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