Many people consider that it is essential to use a free loan calculator and understand the financial implications of any financing option you’re considering, whether it’s a home loan, a car loan, or a boat loan. There are online loan calculators that will give you an idea if a financing option is feasible. These calculators allow you to calculate loan amounts, but they make assumptions. Some calculators expect that the loan will be at compound interest, and others do not take into account tax implications. Hence, read the following basic loan calculators and their features that you need to know.
General Loan Calculator
This calculator allows you to calculate the monthly payments on a general loan. These calculators allow you to enter the interest rate, loan repayment frequency, and repayment amount. If you enter the loan term, the calculator will display factors such as the length of your loan or the amount you owe. The amount of the loan, the interest paid and, if applicable, the repayment schedule.
Mortgage Refinance Calculator
You can use a mortgage refinance calculator to see if you can refinance your mortgage. You can enter the principal balance of your mortgage, current payment amount, current interest rate, and closing costs. You can also enter the term and interest rate of your refinance loan. You will then receive information such as your monthly payment, your reductions, your net savings, and how long it may take to close your mortgage. From here you can see how your payments are broken down for each payment period. It also shows how much interest has already been paid and how much principal remains in each period.
Online Debt Consolidation Calculator
Another type of online loan calculator is the debt consolidation calculator. With this calculator, you can check to see if you can consolidate several loans into one consolidation loan. The calculator takes into consideration details such as the principal balance of your loan, the interest rate, the number of periodic payments and the term of the consolidation loan, the interest rate, and fees. Calculators calculate the difference between regular payments and consolidation loans.
These online loan calculators can provide an overview of the feasibility of a particular financing option. However, specific conditions and other factors apply to some loans. A professional needs to calculate the financial implications of a given financing option before considering a loan.