One of the significant problems for borrowers entering in to home mortgage transactions – which clouded their judgment about whether to accept certain terms offered by lenders – derived from the difficulty determining how to calculate monthly payments due on a particular mortgage. It is not easy just by looking at interest rates (particularly variable ones), annual percentage rates and stated monthly payments to figure out what expenditures will be required by a mortgage agreement when loan fees relating to loan origination, underwriting and processing may also be charged to borrowers.
Now the firm, Loan Tech, has introduced a new product, “My Loan Cost Calculator” which is an app that can calculate what borrowers will pay for particular mortgage products. The app provides a way to input interest rates, loan lengths, APR rates and other information to give a precise answer about how much a mortgage will cost during certain points in time during the life of the loan. Loan Tech, like similar products from Quicken, I-Tunes and android-based platforms can ensure that home buyers will be able to ascertain their expected costs before entering into a mortgage deal.
These types of applications can be particularly helpful in projecting monthly expenditures when it comes to adjustable-rate mortgages. Users can run various scenarios that identify how much their monthly payments will need to be if interest rates rise by certain amounts. As the overuse of these types of mortgages represented one of the contributing factors which led to the financial crisis in 2008, any mechanism which offers borrowers a chance to intelligently know their eventual outlays will minimize the chances of a repeat of the housing bubble which eventually led many property owners to suffer significant losses in its wake. Even with such tools, however, prospective home buyers should discuss their options with a financial counselor, accountant or attorney but making such a critical decision.
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