Interactive Mortgage Calculator Principal: Interest: Payment Term: Monthly Payment: Amortization Schedule Payment # Payment Amount Principal Interest Remaining Balance function calculate() { // calculate the monthly payment here // the code to generate the amortization schedule should go here } Understanding the Basics of an Amortization Schedule and Interactive Mortgage Calculators An amortization schedule is useful for understanding how your mortgage works. It is a table that shows the amount of interest and principal that will be paid each month and how much further you still need to pay until your loan is fully amortized. Interactive mortgage calculators are effective tools to use in order to help individuals evaluate their possible mortgage options and choose the best mortgage fit for them. Using an Interactive Mortgage Calculator When considering a new mortgage, it is important to crunch the numbers and make sure the loan fits within your monthly budget. An interactive mortgage calculator is extremely helpful in doing this. It allows you to calculate the monthly payments on your loan, as well as how much money you could save over a certain period of time. It also allows you to adjust different variables such as interest rate, term of the loan and other factors. Using a variety of these inputs, the calculator will give you a range of options for payments and other information that will help you evaluate the mortgage options available. How an Amortization Schedule Works An amortization schedule is a table which displays the amount of interest and principal you will be expected to pay each month, as well as the remaining balance you owe after each payment. Knowing this type of information can help you understand how your loan works and how much you owe to the bank. The amount of interest and principal you pay each month typically changes over the life of a loan; an amortization schedule will show you this clearly. Ways to Pay Off Your Loan Sooner Now that you understand how an amortization schedule works and how to use an interactive mortgage calculator, you may be interested in ways to pay off your loan sooner. One way to pay off a loan quicker would be to increase the payments that you make each month. This can be done every month, or you could make a one-time extra payment annually. Another way to pay off your loan sooner would be to refinance into a shorter-term loan, so you can pay off the balance faster. It is important to understand how these strategies can impact other aspects of your finance situation. Pros and Cons of Refinancing Refinancing can be beneficial in a variety of ways. It can reduce your monthly payments, help you access the equity in your home or get a lower interest rate. However, it is important to understand the potential drawbacks of such a move. Refinancing can be expensive and result in taking longer to pay off the loan; this will add to the principal balance and drastically increase the amount of interest paid. There may be additional costs associated with refinancing such as appraisal fees, closing costs and other expenses, and depending on the loan terms, the interest rate may increase if interest rates go up. Conclusion Choosing the right mortgage is extremely important as it can impact your finances for years to come. It is worth spending time to understand how an amortization schedule works and how to use an interactive mortgage calculator. Additionally, it is helpful to understand the pros and cons of refinancing a loan, and the different strategies for paying off a loan faster. Understanding the basics of amortization schedules and how to use a mortgage calculator are important steps to making an informed decision about what type of mortgage is right for you.