![]() ![]() Since we designed this mortgage calculator for estimations related to the amortized type of mortgage mentioned above, in the following, we focus mostly on this type of loan. From the perspective of the lender, a mortgage is a type of annuity, which is based on the time value of money formula. This kind of schedule generally corresponds to amortization loan in the US and Canada or repayment mortgage in the UK. The most typical layout for repaying a mortgage loan is to make equal payments that consist of an altering part of principal and interest over the agreed term. It means that if the debtor is unable to realize the periodic payments (installments) at the agreed due dates, the lender can take ownership of the property. The characteristic feature of each mortgage is setting the collateral on the real estate the debtor buys. In other words, we can say that a mortgage is a form of a personal loan that the bank provides for the house purchase. The essential part of a mortgage besides the loan amount (principal) is the interest, which is the cost of the loan for the debtor, and the remuneration for the bank. The bank holds this title until the debtor fully repay the whole loan. Bi-weekly mortgage payment - created for accelerated bi-weekly mortgage estimations.Īlso, you may check our HELOC calculator if you are specifically interested in a home equity line of credit.įormally, a mortgage loan (or simply mortgage) is a legal agreement where a bank (or other authorized institution) lends money to the borrower in exchange for taking the title of the debtor's property.Adjustable-rate mortgages (ARMs) - with this tool you can estimate the interest and monthly payments for ARMs. ![]()
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