Student Loan Calculators – How Useful Are They?

When you are applying for a student loan on the Internet, you may be curious to know just what your liability will be once you have graduated from college. A student loan calculator, which may be available on the same website, can let you calculate what your monthly and yearly payments would amount to and other helpful figures such as total interest.

Student Loan Calculators: What Are They?

Student loan calculators are software programs that are designed to calculate the monthly payments that you would have to pay after graduation on the student loan you are considering applying for. Each lending institution that offers student loans has slightly different terms and conditions that they apply to any student loan you might take out with them.

Federal government student loans charge very low interest rates. In order to get one of these loans, however, you must meet some rather stringent requirements. Banks and other financial institutions also offer student loans to individuals currently studying in colleges and universities, some of which are secure loans. These loans require that you have a mortgage to offer or the personal guarantee of a person who is financially able to pay off the student loan if it were to go to default.

Other lenders offer to provide students with unsecured student loans. Even though these types of loans do not require you to provide a mortgage or someone’ s personal guarantee in order to apply for them, they charge rather high interest rates as a result. These loans let a person get the funds they need to complete their college studies even if they don’t have a great credit situation.

A student loan calculator uses the details of the loan agreement you are considering to make formulas that the software can read and calculate. In this way, student loan calculators are able to determine exactly how much you would have to pay each month. In most cases you have to begin payment on student loans six months after having graduated from college.

Student Loan Calculators: Why Beneficial?

An essential tool for individuals interested in taking out student loans, a student loan calculator tells you how much you will have to pay back on the loan you are considering taking out. Using a student loan calculator will help prevent you from getting into a loan that you will never be able to pay back successfully. You can use the results you get from a student loan calculator to start getting your finances into order now so that you can pay back your student loans when the time comes.

Why You Should Access an Online Auto Loan Calculator?

The importance of an online auto loan calculator should not be undervalued. People can easily calculate the monthly amount of money they need to give to a dealer as part of the repayment of the car loan he or she has taken. It is very easy to access a calculator over the internet. You just need to visit a car dealer website and access the same free of cost. Usually the home page itself contains the EMI car loan calculator. You need to select the interest percentage, type in the lending amount, and choose the maximum number of months within which you prefer to pay back the money to get the monthly equated amount with a single click of the computer mouse.

Auto dealerships selling brand-new cars as well as used ones usually offer new car loans plus used car loans, 24/7 whenever a person asks for. The process of loan application is also pretty easy and hassle-free. Whenever you plan to buy a car and for that matter need the required sum of money, what you can do is simply access the internet. For people who don’t have an internet connection at their home, they can go to a nearby cyber cafe to open a couple of reliable dealer sites to go through the car loan application procedure.

Every website contains comprehensive information about auto loan rules and policies. One of the main benefits of applying for a new or used car loan from a dealer is that they don’t hesitate to approve loans to people with a bad or no credit rating. A soft-copy loan form is available in these sites. A potential car buyer needs to fill up the form adding his personal details such as name, permanent address, age, gender, phone number, email address, etc. The data in each online form gets stored in the database of the dealer for them to access the same anytime of the day or night for getting in touch with the car leads for successful conversion.

The primary advantages of using an auto loan calculator are given below.

Measuring Per Month Payment – To make it easier for people to repay the lending amount, almost all car dealers of today have introduced the concept of EMI or Equated Monthly Installment. The borrowers should calculate the payment amount in advance to save money and also avoid confusion using an online calculator.

Saves Time – Of course you don’t have to run after the dealers to know the amount of money you need to pay back. You can easily do calculate the amount yourself using an EMI car loan calculator.

Saves Money – You can become a better decision maker once you calculate the auto loan options that best suits your monthly budget and lifestyle. You should choose the car loan plus payment option that is within your budget.

Crack the Best Deal – Numerous auto dealers offer loans against different interest rates. However, you need to identify the dealership who is giving car loans against a small rate of interest and calculate the amount of money you need to pay every month. A car dealer who is giving loan against a small interest rate and for an extended period should be preferred.

Fixed Rate Loan Calculators on the Internet

A mortgage is simply a type of loan. More specifically, it’s a loan used for the purchase of a home, in which the home itself serves as security, or collateral, for the loan.

There are two types of mortgage loans: fixed mortgage loans, and adjustable rate mortgage loans. Out of the two, a fixed mortgage loan is simpler and is generally preferred by borrowers.

A fixed mortgage loan is a scheme where the monthly principal amount and interest payments remain steady throughout the life of the loan. This type of Mortgage is called a Fixed Rate Mortgage (FRM). Depending upon the term of the loan, which is the time span of the mortgage loan (the number of years given to repay the loan) – the interest is calculated. For example if the fixed rate mortgage is calculated for 30 years, it is called a 30 year fixed mortgage rate (FRM). If it is for 20 years, it is called a 20 year fixed mortgage rate (FRM) and if it is for 10 years, it is called a 10 year fixed mortgage rate (FRM) calculation.

The great advantage of a fixed rate mortgage is that it enables a person to buy a home or office and keep paying a steady amount irrespective of inflation or rising interest rates. Changes in interest rates do not impact your monthly mortgage payments if you opt for a fixed rate mortgage scheme.

Advantage of a Fixed Rate Mortgage: Predictability

The fixed rate mortgage has been a favorite among Americans for the last two generations. The major advantage of a fixed rate mortgage is you can predict what you are going to pay and prepare yourself for it. There are no shocks with changes occurring at the most unexpected time.

You know what you earn and what you need to pay. So it’s wise to cut your shirt according to your size, so to speak. In other words, don’t assume a loan with a monthly payment greater than you can bear. A good rule of thumb is not to assume a mortgage that would have you paying more than 25% of your monthly income.

This type of mortgage loan is useful for those who can plan their repayment well in advance. For example, salaried employees. The salaries of many people steadily increase with time. This means a planned mortgage loan scheme is best suited for them.

On the other hand entrepreneurs and small business people are not really sure about their income streams. For these people, a fixed mortgage loan may not be the best choice. However the choice of any mortgage loan scheme changes from person to person. Since repayment of a mortgage varies according to the amount of loan and the term (number of years), it is always a good idea to calculate various permutations and combinations. To make these calculations, you would use a mortgage loan calculator.

How Are Fixed Mortgage Loan Calculators Useful?

A fixed mortgage calculator is one of the easier financial tools to use. Just enter your loan amount and the prevailing rate of interest. The loan calculator will do the math and tell you exactly how much your monthly installment will be over a given period of time, whether it is a 15 year loan or a 30 year loan. You can see all the options available and choose what is best suited for you. Many good simple loan calculators are available free online and you don’t have to deal with the hassle of approaching a lender or finance consultant and then fielding telephone solicitations for the next ten years.

SuperLoanCalculators.com [http://www.superloancalculators.com] often reviews websites with online loan calculators and even rates them according to criteria such as whether the website requires registration, whether special software or plugins are required, and the quality of the loan calculator itself.

Some of the online calculators you may find useful include:

  • BankRate.com – I almost always find myself recommending Bankrate.com. They have many excellent tools, and I’ll be writing a complete review of their site in the future. Among other things, they have a very nice suite of loan calculators of all kinds, including of course a simple mortgage calculator, and also a fixed rate versus adjustable rate mortgage calculator. Bankrate.com’s fixed rate mortgage calculator, which they simply call a “Mortgage payment calculator,” lets you plug in your mortgage amount, the term (the number of years of the loan), and the start date of the mortgage. You click the calculate button, and it tells you the amount of the payment. Very simple. As I mentioned, the fixed rate mortgage is a very simple type of loan to calculate. The calculator also has an “extra payments” section that lets you calculate how much sooner you could pay off the loan if you added a fixed extra amount every month, or if you added an extra yearly payment, or even if you added a one-time extra payment on a particular date. It’s a nice tool.
  • CNNMoney.com has a good mortgage calculator. From the home page, mouse over the Real Estate tab at the top of the page, and select Home Finance Calculator from the pulldown menu. The calculator has certain “assumptions” built in. CNNMoney says about this: “We’ve assumed a 30-year mortgage term, annual property tax of $3,500 and homeowners insurance of $481 — the national average. And we do not factor in private mortgage insurance, which you’ll owe if your down payment is less than 20 percent of the purchase price. It averages from $50 to $80 per month. Plug in your own numbers for more tailor-made results.”
  • EasyCalculation.com is not a loan calculation site in particular, but it’s got a ton of calculators of all kinds, with the links to the calculators conveniently placed right on the front page. In the Mortgage Calculator section, they’ve got all the following types of calculators: Simple Mortgage (that would be the fixed rate mortgage calculator that this page discusses), Amortization, Loan Comparison, Adjustable Mortgage Payment, Down Payment, Interest Only Mortgage, Mortgage Prepayment, Pre-Payment Penalty, Mortgage Refinancing. You can’t fault them for thoroughness! Be aware, though, that the calculators are pretty basic and don’t offer all the bells and whistles like the sites listed above.

This is not an exhaustive list of websites with good mortgage calculators, as there are many others available on the net and I haven’t attempted to review them all. But the ones mentioned are among the best and should more than meet your needs.