Title:
Mortgage
Calculators Confusion!
Word Count:
566
Summary:
When you first
start using a mortgage calculator such as Karl Jeacle's Graphing calculator,
you might easily get confused, especially if you are new to the world of buying
property. The sliding scales on this calculator aren't what some people are
used to seeing.
Most people are used to typing their numbers into boxes with familiar features.
But don't be dazzled only by the graph, boxes are still available further down
the page so that you can use numbers instead of the sc...
Keywords:
mortgage,mortgage
calculator,home loans
Article Body:
When you first
start using a mortgage calculator such as Karl Jeacle's Graphing calculator,
you might easily get confused, especially if you are new to the world of buying
property. The sliding scales on this calculator aren't what some people are
used to seeing.
Most people are used to typing their numbers into boxes with familiar features.
But don't be dazzled only by the graph, boxes are still available further down
the page so that you can use numbers instead of the scales. Using Karl Jeacle's
mortgage calculator against one on a different website can give you different a
different feel for what looks like the same set of figures.
It's all to do with the basic programming that has developed around mortgage
calculator. Some mortgage calculators are very basic, they input very simple
basic numbers and a few calculations take place in the program behind the
scenes on your computer. They give you suggested figures that, although not
perhaps 100% accurate, will give an approximate idea of what the property will
cost you.
There are other factors that need to be taken into account when a mortgage is
computed, such as your age and state of health for example. Many basic mortgage
calculators won't take this into account, but some more sophisticated programs
can. These will give a more accurate analysis of the mortgage situation you
would face as it will have more information about you personally. The more the
mortgage calculator knows about you, and the property, the more detailed and
accurate the answers it gives will be.
This is another reason why sliding scales such as Karl Jeacle's Graphing
calculator might not work for some people. Sliding scales are often better for
approximation rather than specific numbers. Perhaps 48 instead of 50 is
"almost" right, but it's not going to create the most accurate
analysis and the hard figures you need to figure out your budget and finances. The
various colors on this mortgage calculator are also a little less clear than
straight forward numbers.
So why even mention Karl Jeacle's mortgage calculator? Even though it won't
give you precise numbers, and no calculator does, the graphics give you a feel
for just how much that mortgage is really costing you. You can see for
yourself, graphically, how adding a little bit to your monthly mortgage payment
makes a large difference down the road.
Using a variety of different mortgage calculators gives you a good overall feel
for how a mortgage on a particular property would affect your budget.
But, make sure that you know what their figures are based on. For example, the
mortgage calculator may not ask you for a mortgage term, but somewhere on the
calculator site there may be a note to say that calculations are based on 30
year mortgages.
The same could be true about interest rates. While some mortgage calculators
ask you to input the interest rate, others assume an "approximate"
rate. Mortgage calculators linked to specific lenders could take the interest
rate automatically from the lenders financial pages so they are the current
default rate and not able to be altered even if you have perfect credit.
Use one calculator at first to pin down your basic options and figures. Then
test those numbers out on a variety of mortgage calculators to get the best
feel for how your new mortgage will affect your finances and change your life.