A mortgage rate calculator is a special calculator that displays the mortgage rate of interest. Online mortgage rate calculators can also display amortization charts with payments to be done on a monthly basis. The basic intention behind using mortgage rate calculators is to show how much of the monthly payment goes towards the principal and how much goes towards payment of interest and taxes.
The inputs required in a mortgage rate calculator are the principal amount of mortgage taken, the period, and the rate of interest during the time of taking the mortgage. If there are any taxes and insurance involved, then they have to be fed into the calculator also. When the solve button is pressed, the figure of the total monthly payment is displayed. Interest rate calculators have a special button that splits this monthly payment into the principal and the interest.
Mortgage rate calculators available online are much more detailed. When the information is inputted, they display an entire chart, which gives the schedule of the amortization. There are various columns such as payment on principal, payment on interest, etc. Such an amortization chart gives a proper view on the fact that as the period increases, the payment towards the principal increases and the payment towards the interest amount decreases. Online mortgage rate calculators can be used to depict up to three different scenarios which gives the buyer a clear idea when purchasing a mortgage. Some online mortgage rate calculators can present the information in a graphical chart format to enable better understanding.
Handheld mortgage rate calculators are used by banks and other companies dealing with the selling of mortgages. They are also frequently seen among mortgage brokers and agents. A handheld mortgage calculator would cost anything between $20 to $100, depending on its quality and the features it has.