A software calculator to evaluate and compare various mortgage offers.
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Creating a New Loan Project
Start Mortgage Calculator. You can create new mortgage projects from the main window. Click the New mortgage button, or select Mortgage > New... from the menu or just hit Ctrl+N keys on the keyboard. The Mortgage Properties window will appear.
Mortgage Calculator can handle fixed-rate mortgages only. To compute the monthly payment, Mortgage Calculator takes the loan amount, adds compound interest and divides this sum by the total number of payments. This way your monthly paymentremains constant, while its structure changes. Over time, the interest portion of each payment decreases as the loan balance decreases while the amount to pay off the principal increases. This scheme of paying loans off is called amortization.
Setting mortgage parameters
To specify the mortgage parameters, fill in the following fields in the Mortgage Properties window:
To apply the mortgage parameters, click the Calculate button. If you have entered a value incorrectly, it will be shown in red, and the program will prompt you to correct the error. In this case, enter the correct value and click Calculate again. If there are no more errors, Mortgage Calculator generates the Amortization Schedule table:
Saving the project
When saved, your new loan project will be included in the loan table.