A mortgage calculator can be defined as a system or tool that people use to calculate any possible changes that are bound to happen when the variables that attached to a mortgage loan changes. A mortgage can be defined as a loan that people and businesses use to finance property purchases; this loan is a long term loan therefore a person needs to use a mortgage calculator for them to be able to understand any implications that mortgage variables can have on the monthly payment that the mortgage holder has to pay.
Mortgage calculators are used to calculate mortgage payment when the interest rate changes, the mortgage payment that a person pays for a mortgage loan increases when interest rates increases. Financial institutions use mortgage calculators when they are determining the monthly installment that mortgage holders would be required to pay every month. There are very variables that affect the monthly payment that a person pays for a mortgage and most of these variables are not fixed variables therefore they are subject to change.
A mortgage calculator is not only used to determine the monthly payment that would be made by a certain mortgage holder it is also used to determine the number of years that it would take a person to pay back the mortgage plus interest. People that specialise in calculating mortgage payments for loan seekers use mortgage calculators to get accurate figures.