When it comes to calculation of loans and mortgages, there is a special calculator, known as the "Financial Calculator". A simple, physical device that has an online version of itself, the financial calculator is excellent for calculating incurred interests, loan and mortgage repayment rates etc. The calculator has built in formulas and thus makes it easy to calculate financial rates.
Other than the physical device, a financial calculator can be found on financial websites as a software to perform calculations. A basic financial calculator can be purchased for $35 and it is a must-have device if you are related to financial industry.
There are three basic types of financial calculators; loan calculators, mortgage calculators and credit card calculators. Each of them have their respective attributes.
Loan Calculators
A loan calculator enables users to understand the payable amount of a loan, along with the specified interest rate. Using the loan calculator, you will be able to understand what the payable amount would be, keeping in consideration the principal amount and the interest rate. The loan calculator deals with the following values:
(a) The actual loan amount
(b)Estimated repayment time
(c) Estimated interest rate.
You can always use an online calculator instead of a physical calculator.
Mortgage Calculator
There are two mortgage calculators namely fixed rate and adjustable rate mortgage calculators
Fixed rate mortgage calculator requires information about.
(a) The loan amount.
(b) The interest rate on the loan amount
(c) Time period of the loan
Punch in the values for the above information and you will get all the required calculations. The adjustable rate mortgage calculator is complex. For an adjustable rate mortgage calculator, the following is required.
(a) Loan amount.
(b) Interest value on loan amount.
(c) Loan term.
(d) Initial length of time before loan adjusts
(e) The time period after loan adjustment
(f) Rate after loan adjustment.
The fact remains that a mortgage calculator can just give you an estimate and not an exact figure, as mortgage rates, constantly varies. You have to be aware of the constantly changing interest rates, and should seek the help of financial experts, if you need an actual understanding of the mortgage payment amount.
Credit Calculator
When dealing with credit cards, you need to be aware of the rates that go along with it.If you are not going to be aware and keep a good track on credit and its rates, you will be caught off guard with its high rates and interest charges which can cause tedious issues. To get an understanding of the amount required for your credit cards, you will need the help of a credit card calculator. Not only it will keep you aware of the expense, but also avoid possible debt issues. Information required for credit calculator is.
(a) Amount at present
(b) Interest on that amount
If you want you can also use online credit calculators, that will give you fast and updated values.
A normal calculator cannot give you the required calculation, when it comes to loans and mortgages. If you really want to understand loan figures, then these financial calculators are the best to opt for.
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