Super Calculator
Money makes the world go round; calculating how much money you have will make it go round all the more smoother.
In real estate it is highly unlikely that you will have enough capital to pay for a property in full, i.e. in cash. What is more likely is that you will have a certain amount of monies to invest in the property and the remainder will come (or be bridged) from a loan from a bank or Loan company.
Merely thinking of taking out a bank loan can make many would be buyers feel nervous, as repayments are often shrouded in uncertainty in the eyes of many people.
Although the bank or Loan company will make every effort to explain all the details of the loan and what the repayment methods are, you should always be aware of the following when taking out and loan, and throughout its life span:
How much is the loan amount in dollars
What the repayments per week/month/year are
How many repayments there will be
When the balance of the loan will be paid off
What the options are for repaying the full amount earlier What the interest on the loan will be
What the consequences of missing a loan repayment are
Knowing the answers to all of the above questions will help you analyze the loan in its entirety, so that you can weigh out all the risks.
Knowing Your Payments
Just knowing what the repayments are and when they are due is only one aspect of repaying the loan; you should also have the means to calculate repayments when certain developments arise, such as getting a pay increase.
Loan calculators offer the chance to calculate all aspects of loan repayments, s well as the opportunity to keep track of the payments and how certain aspects can affect them.
Loan calculators can calculate just about anything that you could want to know about your existing loan, or about a loan that you are interested in taking out. Using them is relatively simple.
What Is A Super Calculator
The super calculator is a specific type of loan calculator that can be used for all sorts of loans and can provide various information on a range of loans, their repayment period and interest paid over the course of the loan and other important information, such as how much you will have to pay per month; to help you keep on top of your finances.
The first way in which a super calculator can be used when looking into loan finance is to find out if you are actually qualified for a loan, or whether the loan that you are interested in applying for, through a bank or loan company, is out of your reach because you are in a low income bracket or the interest rate of the loan is too high.
Most loan companies and banks use the same criteria to assess an applicant's suitability for a loan and the super calculator is built around the criteria that are used by these companies to assess the suitability of an individual who is applying for a loan..
You can put in all of the details regarding the loan you are looking for, e.g. amount of loan, and the calculator will 'qualify' you. In reality 'qualify' means that the calculator will perform a set function and tell you if a loan company or bank would accept you, for the loan amount you require.
The qualifying calculator qualifies you on the proposed loan by analyzing the loan against your personal income.
If only one person is signing for the loan, yet it is for a family, or more than one person then you should sum up the total income, savings, and monthly debts of all borrowers. You need to add up your income on an annual basis.
If you are self employed you will probably need to average your last two years income, based on your tax returns and use this as you annual salary in the calculation.
Do You Qualify?
To check if you qualify for a loan you should go through the following procedure, to reach an answer:
Fill in your gross pre-tax income Fill in your total monthly debts Fill in the loan amount that you wish to take out Fill out the amount of interest on the loan Fill out the number of years over which you want to pay off the loan
Once you have filled out all the relevant boxes the calculator will give you a yes or no answer, as to whether you qualify for a loan; again the answer is based on the criteria that banks use, but may not be totally accurate for all banks or loan companies.
If the loan calculator returns a yes statement then you are, in theory, going to be accepted for the proposed loan that you are looking into.
The results of all other calculations are also shown on the screen and include such items as what your monthly payment will be, what the interest on the loan is and when the payments will finish.
If you have an existing loan and wish to see whether you should change this loan to a new one, the super calculator can do this too.
All you need to do is put in your present loan amount and interest, plus how many years remain and then type in the new loan amount that you are looking at taking out.
The super calculator will plot a series of graphs and table to compare various scenarios, relating to the two loan amounts, indicating the following values when the two are compared, assuming you change to the new loan:
Payment savings
Interest saved over loan term
Interest on proposed loan Interest on existing loan
Amortization
Also available through the super calculator is the ability to see the amortization table.
Amortization is the repayment of a loan with periodic payments of both principal and interest calculated to payoff the loan at the end of a fixed period of time. The amortization table that is produced by the super calculator indicates how much of the loan remains after each month or year, as well as what the amount of interest you are paying is for each period, as well as how much of the loan you are paying off each time and how many loan repayments are left until the total loan amount is repaid.
