If you would like to know what a second mortgage entails or would like to secure one, then an easy tool, that won’t cost anything to use is a second mortgage payment calculator. A second mortgage calculator is a handy tool that will allow you to calculate the amount that you can theoretically qualify for, as well as the amount of equity that you can extract from your property as well. Here, we will provide a guide to using a second mortgage payment calculator.
Basic Second Mortgage Payment Calculator
There are some rudimentary second mortgage calculators that you can use online. Essentially, the only figures you will need to input are the numerical value of the home, the balance on your 1st mortgage, and the amount of the 2nd mortgage, if applicable. Then hit send, and you will get a figure that indicates the amount that you can borrow.
The goal of a mortgage payment calculator is to help you determine how much you would potentially qualify for given your current financial situation, as well as the monthly payments you would be expected to make.
You may also be able to obtain up to 90% in terms of the loan to value, and some companies will offer low rates, fast approval, and a 48-hour closing window. Some will even accept applicants with poor credit, so it doesn’t hurt to shop around for the best offers.
Advanced Second Mortgage Payment Calculator
A more advanced second mortgage payment calculator will help you ascertain the savings from consolidating and refinancing your second and first mortgages into one loan. You can use a more advanced second mortgage payment calculator to determine how long it will take you to reach the break-even point on your closing costs, the amount you will save, in the form of interest payments via consolidation or refinancing, as well as the monthly payments you will be expected to make.
You will only be expected to input the interest and principal figures into the system, meaning you will not be required to insert the amount you pay every month into the second mortgage calculator.
You will need to insert the balance due on your first mortgage, so can call your mortgage lender if you need any help. You will also be asked by the system to input your current monthly payment into the slot. Again, you will only need to input the interest amount and principal. Your first mortgage interest rate percentage will also need to be inserted to complete your calculations for your first mortgage, while the second mortgage section will usually be optional.
If you would like to learn more about how second mortgage calculators, call Northwood Mortgages at 888-492-3690 or contact us here.