5 Ways A Loan Calculator Can Become Your Best Friend
Calculator (Photo credit: 401(K) 2013)
Whether you’re applying for a home or personal loan online, or you’re just browsing around for the best deals, you may have encountered a loan calculator. At first glance, a loan calculator may look a little complicated, but it’s a very simple tool to use. Most people use it to calculate their repayment terms, but it can be used for a few other benefits.
Discover When You’re Being Taken for a Ride
The wonderful thing about loan calculators, is that they can be used on smart devices such as tablets or smartphones. These devices are normally on your person, which allows you to access websites from anyplace with a WiFi connection. If you’ve been quoted a price for a loan, and you happen to be in their office, head online to the loan calculator and double-check their calculations. Believe it or not, the price loan officers give is not always correct. By using your loan calculator as a backup, you can find out if you’re being overcharged or if the calculations are off in any other way.
Helps You Budget Better
Before actually applying for a loan, you can use a loan calculator to find out if you can afford the monthly repayments. When setting a budget for yourself, keep entering different percentages in the ‘Interest’ field to find out the maximum interest you can afford to pay. The maximum is the number you should always plan for even if you score a loan with less interest. The reason — interest rates change frequently, so you’ll be prepared for the change.
Helps You to Negotiate
More often than not, you’ll be quoted a number that’s, well, less than savoury. If this is the case, the ball is in your court to go ahead and negotiate. In some cases, the loan officer will work with you to get a better rate. However, you can’t just start throwing out numbers without knowing whether these numbers are fair or not. By using a loan calculator, you’ll see what you’re able to repay and what interest rates works best for you.
Find Out How Much You Can Borrow
Loan calculators allow you to enter the amount of the object you’re trying to get a loan for. From there, the calculator will tell you how much you will have to borrow in order to get that amount. However, when it comes to home loan calculators, they’re structured a little different. If you’re going through a bank that only gives you three times the amount of your salary, you may not be able to get the entire price of the house if it exceeds this total. By using a loan calculator, you can see exactly how much they would give you and how much you’d need to raise.
Lessen the Calculations
Since many of us are on the go and have very little time to sit and calculate interest, loan amounts and so forth, loan calculators are very helpful. Not only do they do all the hard work for us, but they’re extremely straightforward for those who aren’t so good with math.
As you can see, loan calculators help with every aspect of planning a purchase and getting a loan. Check out CB Online and get calculating!
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Category: Loans
