action. Mortgage Ratios Calculator Enter Loan Amount: Enter Interest Rate: Enter Term length: Calculate Reset function calculate(){ var loanAmount = document.getElementById('loanAmount').value; var interestRate = document.getElementById('interestRate').value; var termLength = document.getElementById('termLength').value; var totalAmount = (loanAmount * interestRate * termLength) / 100; document.getElementById('output').innerHTML = "Total Amount of Payments: $" + totalAmount; } function reset(){ document.getElementById('loanAmount').value = ""; document.getElementById('interestRate').value = ""; document.getElementById('termLength').value = ""; } calculate(); Understanding Debt Ratios and Mortage Calculators From the time you start to take on loans and other forms of credit, you’ll begin to build up debt. Managing these debts in a way that works best for you can make or break your financial stability. That’s why it’s worth taking the time to learn the importance of debt ratios and mortgage calculators. Here, we’ll go over what these tools are, as well as how you can use them to help you better manage your finances. What Is a Debt Ratio? Your debt ratio refers to the ratio between your income and your debt. For example, if you make $30,000 a year and have debt of $15,000, then your debt ratio is 50%. Most lenders and creditors use your debt ratio as a quick way of seeing how much debt you have and how capable you might be of paying it off. If your debt ratio is too high, this could be a flag to potential lenders that you might not be the right fit for their product. How Can You Lower Your Debt Ratio? Your first step should always be paying off debt as quickly as you can. The easiest way to lower your debt ratio is to simply pay off as much debt as possible. It’s important to be mindful of interest rates here. If you have high-interest debt such as credit cards, prioritize paying those off first, as those have the highest impact on your debt ratio. You can also try to increase your income. The more income you have, the less significant your debt ratio becomes. Finally, if you have any large assets such as homes, cars, or stocks, you can use those as collateral to secure loans which can help lower your debt ratio. What Is a Mortgage Calculator? A mortgage calculator is an online tool or program used to figure out your potential mortgage payments. You enter a variety of things such as the loan amount, term length, interest rate, and other factors to determine how much you’d be expected to pay each month. This helps you get an idea of what you’ll be able to afford monthly. It can also be a way of seeing just how much a specific loan might cost you over the long run. Many mortgage calculators have a variety of additional features as well such as amortization schedules and the ability to compare multiple loan terms side by side. Knowledge Is Power By understanding debt ratios and using mortgage calculators to your advantage, you can be more prepared for taking out loans and better manage your finances. Make sure to monitor your debt ratio as you take on loans and credit and strive to keep it as low as possible. And when you’re shopping for loans, use a mortgage calculator to find the best deal. The tools above can help you save time and money and make sure that you’re always getting the best deal.