Many years ago, when you applied for a mortgage, your broker or provider would give you one or more sheets of paper for you to fill in to help you understand your mortgage budget. In addition, he would have to crank the handle of his desk calculator, or mystifyingly enter a bunch of numbers into his desk top calculator to come up with your expected monthly repayments for your mortgage. These cumbersome operations were the forerunners of today’s online mortgage calculators.
Nowadays there are a range of calculators to help you with your financial planning. Online age calculator As well as mortgage calculators, there are budget calculators, loan calculators, pension calculators and even debt tests.
Debt tests help you find out whether you will have – or already do have – problems with borrowing. You answer a few simple questions, and you get answers about how much you should borrow, tips how to avoid debt, and assistance in tackling debt problems. A debt test can also tell you how you might appear to a lender – crucial in these times of tightening loan criteria.
Mortgage calculators can range from a simple calculation of monthly repayments to wider assistance with budgets and affordability. A mortgage calculator helps you to see what your mortgage payments might be depending on how much you want to borrow, how long for and at what rate.You can use a mortgage calculator to find out how much your monthly mortgage repayments are likely to be. This can help you estimate the size of mortgage you can afford at a particular interest rate. It is important to remember that the figures you get in reply are only a guide and the exact cost will depend on the particular mortgage you have. Your mortgage broker or lender will still provide those figures as part of your documentation in the same way he/she always did.
A loan calculator works in a very similar way to a mortgage calculator, but the loans are usually smaller, and the period of the loan is usually shorter. You can use a loan calculator to work out what your repayments would be for various loan amounts, repayment periods and interest rates. This will of course help you to decide whether you can afford the repayments, and help you compare different loans.
A budget calculator can help you with budgeting, borrowing, planning for the future and shopping around for financial products. You can calculate your budget and find out if you have enough money to cover your spending. Budget calculators will ask you about your income, your pension income, state benefits, investment income. It will also ask you about your spending habits, such as utlities, phone bills, mortgages, rent, etc. It will ask you about other outgoings such as card repayments, pensions and savings, and insurances. You will also be asked about your social spending habits, such as going out, alcohol, cigarettes, holidays and similar. On top of that you will be asked about childcare costs, and the amount you spend on travel. From these figures the budget calculator will give you an indication of how much money you have available each month.