Mortgage calculator is an online financial tool. A mortgage loan is a type of loan specifically used to finance the purchase of real estate, typically homes or properties.
A mortgage loan is one of the most common ways for people to finance a home purchase. With a mortgage, you borrow money from a bank or lender to cover the cost of buying a house.
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If you take a loan on any property that you already have, then it is called Mortgage Loan. Mortgage loan is also known as Loan Against Property (LAP). This means that today we have a property. We mortgage it to the bank and we take the money, then it is called mortgage loan.
Mortgage loan is taken because the property we have, we take the money by mortgaging it to the bank.We can use it in any way like starting a new business, moving the business forward, setting up a factory, buying a masonry, you have to buy a plot. Whatever money you take from the mortgage loan, you can do anything with that money.
A loan calculator work on the following formula.
M = [P x R x (1+R) ^N] / [(1+R) ^N-1]
In the above formula
|M||Mortgage amount .|
|R||Rate of interest.|
For example, If a x person avails a loan of $1000,000 at an annual interest rate of 6% for a tenure of 96 months (8 years), then his EMI will be calculated as under.
If rate of interest is 6% p.a. then r = 6/12/100 = 0.005.
EMI= 1000,000 * 0.005 * (1 + 0.005)120 / ((1 + 0.005)120 - 1) = 13,141.
The total amount payable will be $13,141 * 96 = $1,261,577. Principal loan amount is $1000,000 and the Interest amount will be $261,577.
It is very easy to use the Mortgage calculator. Here's a step-by-step guide on how to use a mortgage calculator:
With the help of these steps, you can easily calculate your Mortgage, that too for free.
Some of the features of the Mortgage calculator tool are as follows: