While this isn’t exactly a bank or financial institution that offers loans, it’s a tool that can help you determine the monthly payment that you might have to pay back based on several different components. You enter the amount of the loan into the calculator with the interest rate to get the payment. The interest rate and the loan amount can be changed various ways so that you can see what would work best with your budget and situation.
Another feature of the calculator is that you can change the length of the loan in years, viewing how the payments will change based on how long you have the loan extended for and if there are any surprise fees at the end of the loan. You can also view the term loan in months instead of years if this is the way that the loan is set up with the bank. A pie chart on the side of the calculator gives you a clear vision of how much of the payment is going to the principal and how much is going to the interest. This is a helpful tool so that you can visualize just how much money you’re paying back on the loan itself, especially if the interest rates are higher.
Sometimes, you can determine whether taking out a mortgage is really the best thing to do once you crunch a few numbers with the calculator. It can give you an indication as to how much money you will be spending over the course of the next few years and whether it’s really worth applying for the mortgage in the first place. There is a schedule that you can view that allows you to see the entire payment plan of the loan. You are given the dates of when the loan payment is due each month, the amount that is to be paid and the balance of the remaining loan. You can adjust the loan if you plan to make any extra payments in the year or if you have made extra payments that you didn’t plan on making. The schedule also keeps a track of the amount of interest that you pay on the loan, clearly seeing how much the overall loan decreases with the interest payment and the principal. This is another feature that is very helpful if you’re looking for a way to see where your money is going every month with the mortgage.