4/9/2024 0 Comments Loan comparison calculator![]() ![]() This mortgage amortization calculator clarifies the borrower’s situation using information on the original mortgage term, years remaining, current payments, and the current principal of the loan. Origination fees, commitment fees, balloon payments and the annual percentage rate (APR) are all factors that loan comparison calculators take into consideration.Ī mortgage payoff calculator is a great tool that helps borrowers understand the interest they can save by increasing their mortgage payments. This calculator goes further than the interest rate and loan term. When comparing loans, there are a multitude of factors to be considered. Short term or long term? Fixed rate or variable rate? Loan comparison calculators help borrowers determine the loan that is right for their situation. These calculators answer the question, “How much money can a borrower save per month by refinancing?” The borrower compares their current mortgage payment to what they could be paying with a new term, interest rate, APR, and more. Lenders can use the information gained from this calculator to educate potential borrowers about the benefits of homeownership. These calculators showcase the appreciation of a home that the potential borrower will not experience as a renter for added value. This calculator compares the borrower’s financial situations of both renting and buying a home. buy calculator shows that the grass may be greener as a homeowner instead of a renter. The borrower’s annual income and the mortgage’s term and interest rate is compared to their credit score, employment status, and other factors that determine the range for the total loan amount. With the information from the affordability calculator, lenders can change their communication strategy to educate their borrowers on achieving their financial goals.Ī mortgage pre-approval calculator assess a borrower’s creditworthiness to estimate how much financing they can qualify for. Using the information from this calculator, borrowers evaluate how much mortgage they can realistically afford. This amortization schedule also shows when the borrower will no longer be required to pay PMI.Ī mortgage affordability calculator focuses on the borrower and their monthly incomes vs. In that case, this calculator showcases a factor known as private mortgage insurance (PMI), which will be an added cost for the borrower until they reach a certain percentage of loan to value (LTV).Īs a bonus, a loan officer can use a detailed breakdown of the loan balance year over year to generate an amortization schedule. Suppose the down payment is below the standard 20%. This calculator provides the lender with a breakdown of their monthly mortgage payment showing interest and principal reduction. A mortgage payment calculator creates an amortization schedule based on the loan amount, interest rate, down payment and loan term (typically calculated in years). There are many unique calculators that can educate borrowers and increase the volume of digital leads.Ī mortgage payment calculator is a tried-and-true solution for any borrower looking at financing options for their home purchase. Mortgage calculators are not a one-size-fits-all-tool. Once in the system, the lender can communicate with the potential borrower and guide them through the loan application process. Lenders can fix this issue by adding a clickable link where the prospective borrower enrolls themself into the lender’s mortgage CRM. ![]() If all the calculator does is provide the answer to the borrower without any follow-up communication or calls to action, the lender is not guaranteed to win the business. The best mortgage calculators use “microtransactions,” spacing out the questions in phases to make the calculator feel less daunting.Īnother factor for lenders to consider is how the calculator they use feeds into their marketing automation. Misinformation can cause frustration for the borrower, who may feel like they are a victim of a “bait and switch,” potentially souring the borrower’s relationship before it ever really began. If the information entered by the borrower is not thorough, the calculator will give an inaccurate answer. ![]() However, this can create challenges for lenders who use these mortgage calculators as a part of their lead generation strategy. A great mortgage calculator collects the right amount of information for the mortgage lender without overwhelming the borrower. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |