Free Printable Amortization Table
Can a Free Printable Amortization Table Tell Me Which Mortgage is Best For Me?
If your lender or mortgage broker is being up front with you, you might not have to try to get a free printable amortization table to study in order to get an indication that a particular mortgage isn't right for you. This would be true if the mortgage he is offering is a negative amortization mortgage. In this case, no amortization table would help because this type of mortgage doesn't amortize, at least in the first few years
With a negative amortization mortgage you can borrow a large amount of money, like for instance, $300,000 and only need to make a small monthly payment, like $999, for instance.
Whenever you see an ad that seems like a really great deal, go to a free online calculator that will calculator for interest rate. An excellent one can be found at: http://www.ezcalculator.com/interest.htm . Here, you will get no hassles whatsoever because it is not a lender site. It is an investor site.
Calculate the interest rate for the loan. $300,00 of principal for $999 a month for 360 months (30 years) is 1.244% mortgage. Folks, there is no such thing! This is a negative amortization mortgage. With a negative amortization mortgage, your mortgage payment will go up exponentially, after the negative amortization period of the mortgage ends. At this time, the interest rate becomes normal like, seven percent, for instance. In this case, your monthly payment would climb to $1,995.91. This steep of a payment adjustment is not one most people can handle.
There are exceptions, if you're a rookie in major league baseball who has Henry Aaron type potential; perhaps a negative amortization mortgage is okay for you. The reason for this is, you know that within three years you will be making a lot of money. Perhaps you're working toward being a doctor. You know when you start your own practice you're going to be making five or six times more money than you are right now. A negative amortization mortgage may be appropriate for you, as well.
I can't think of too many more examples of where a negative amortization mortgage would be appropriate because a negative amortization mortgage just a come on and often results in foreclosure. The point is you don't need amortization tables to tell you not to take a negative amortization mortgage.
It is impossible to create a negative amortization table when you have a variable-rate mortgage or ARM, as it is known. Within an ARM you could only guess because you don't know what the interest rate will be in the future. Some ARMs adjust yearly. Some adjust after three-year periods others adjust after five-year periods. You do know that the rate you get at the beginning of the mortgage will be lower than the going rate. The slang term for this rate is, teaser rate. You get qualified at this rate and then the rate will adjust at the first adjustment time. It is possible for an adjustable-rate mortgage to adjust downwards, but it is very unusual for this to happen at the first change since the original rate will be much lower than the going rate. In the case of an ARM, a mortgage amortization table could tell you not to take the mortgage. This is simply because within ARM, an amortization table cannot be made.
If you get more than one offer for fixed-rate mortgages, a free printable amortization table can be very helpful. It can show you how much interest you will have paid after different periods of the mortgage. So, by looking at the amortization table you can decide, after taking into account how much the closing costs would be on each of the mortgages, which one is better for you.
So, the answer is yes. A free printable amortization table can be very helpful when deciding which mortgage to take. The convenience of being able to print it out and study it can not be overestimated because you will make a better judgment if you look at anything at your own pace. Also, the fact it is free is very helpful for obvious reasons!
However, remember the rule, stay away from negative amortization mortgages, and in this particular market we find ourselves in right now, an ARM is not the best choice, either. Look for a low interest fix rate mortgage. Then, you can look at a free printable amortization table for help. by Ed Lathrop.