Navigating through mortgage loan calculations can be daunting. Tools like the Bret Whissel Mortgage Calculator make the process more accessible. This article provides a detailed exploration of this exceptional calculator.
Definition
The Bret Whissel Mortgage Calculator is a tool for computing monthly mortgage payments based on different factors such as loan amount, interest rate, and loan term.
How Bret Whissel Mortgage Calculator Works
The calculator takes three input parameters:
The principal loan amount (P), the annual interest rate (i), and the loan term in years (n). It uses these values in a predefined formula to calculate the monthly payment. The user-friendly interface makes this complex calculation hassle-free for users.
Mathematical Formula Behind Bret Whissel Mortgage Calculator
The mortgage calculator uses the formula
M = P[i(1+i)^n] / [(1+i)^n – 1]
where M is the monthly mortgage payment. ‘P’ represents the principal loan amount, ‘i’ is the monthly interest rate (annual interest rate divided by 12), and ‘n’ is the total number of monthly payments (loan term in months).
Example
For example, if a homeowner takes a $200,000 loan with an annual interest rate of 4.5% for a term of 30 years, the monthly payment is calculated as $1,013.37.
Applications
Real Estate Decision Making
Potential homeowners can use the calculator to understand how changing the interest rates or loan terms affects their monthly payments.
Loan Refinancing
Existing borrowers can use it to decide whether refinancing their mortgage can lead to savings.
Frequently Asked Questions
The Calculator provides highly accurate estimates when accurate inputs are given. However, keep in mind that it doesn’t include costs like property taxes or homeowner’s insurance.
Yes, the Calculator is a free tool available online for anyone seeking to estimate their monthly mortgage payments.
Conclusion
The Bret Whissel Mortgage Calculator simplifies the process of estimating monthly mortgage payments. It’s a valuable tool for potential and existing homeowners to make informed financial decisions. By understanding the mechanics behind it, users can leverage this tool for their maximum benefit.
