If you’re new to the mortgage market, perhaps thinking about buying your first house, then you may have heard people talk about a “mortgage calculator” or a “prequalify mortgage online,” but you may not know what it is.
A mortgage calculator is your friend as you apply for mortgage preapproval, because it tells you exactly what your mortgage amount means. Say you’re applying to be preapproved for a mortgage loan of $300,000. That’s a lot of money—in a sense, it’s so much money as to be meaningless, because you’re not repaying it all at once. What you really need to know is how it breaks down.