Mortgage calculators are extremely accurate for calculating mortgage payments, mortgage rates, loan costs, and other financial characteristics related to a mortgage loan.  However, the results coming from a online mortgage calculator are only as good as the data that has been input.  Often, the results of a mortgage calculator do not match a borrower’s initial loan request with a mortgage lender or the final loan approval due to changing or different input data.

Mortgage calculators are not at fault when it comes to poor results.  The culprits for the varying results are either due to changing input data or using estimated data as the input.  An online mortgage calculator generally requires the user to input the loan amount, the loan term, and the mortgage rate, in order to retrieve a basic principal and interest monthly mortgage payment.  The monthly mortgage payment result is based on the input parameters, and should that data change over time, the output will change.  If a higher mortgage rate, loan amount, or shorter term is entered later into the calculator the results will be a higher monthly mortgage payment, while the opposite is true if a lower rate, longer term, or smaller loan amount is entered.

Mortgage rates change daily and may even change during the day.  When a mortgage shopper is making initial inquiries about mortgage rates and payments, the current mortgage rate used with a mortgage calculator is sure to change long before the application is submitted, the loan rate is locked, or the loan is completed.  The mortgage rate used for a mortgage calculator on one day may not be available the next day or even later that same day.  As the rates change, so will the results.

Mortgage calculator results can be especially vexing when used to calculate the principal and interest for a mortgage payment as well as the taxes and insurance portion of the payment.  Usually, these mortgage calculators are using estimates on what the property taxes or property tax rate will be on the property being financed as well as estimates on the insurance rate or monthly insurance payment.  As long as the numbers used in the calculator are estimates, the user can not expect the output to be 100 percent accurate.

Mortgage calculators are very useful tools for new home loan borrowers to estimate and evaluate the available mortgage options but, the user has to consider the possibility that the information regarding their loan request may change and subsequently change the findings retrieved from the mortgage calculator.   Online mortgage calculators are accurate, sometimes the data used is not.

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