Understanding Mortgage Calculators | Quicken Loans Education

Eddie Berger, director of solution consulting at Quicken Loans, explains one of the most important tools someone considering a mortgage should consider – the mortgage calculator. Mortgage calculators allow someone to find out what their payment and interest on a mortgage would be, and also if they could save money with a lower rate. There are four variables in a mortgage calculator – term, loan amount, payment and rate. As long as you know three of them, you can use a mortgage calculator to find the fourth. For example, if you know the term (30 years), loan amount ($200,000), payment ($900), then you would be able to find out what the rate is. In the previous example, if you knew the rate and the other two variables, you would find out the payment. This is probably the most common way mortgage calculators are used. Anyone considering a mortgage to buy a home or refinance should use a mortgage calculator to better understand the cost of a mortgage. For more information go to http://www.quickenloans.com/blog/ or call 800-QUICKEN.