What is a mortgage loan payoff calculator?
Mortgage loans are invariably large loans, because of which, the repayment schedule is designed in such a way that the borrower finds it easier to pay back the sum borrowed along with interest. A special method of calculating the installments has been developed, which is equitable to both borrowers and the lenders. The installment is called equated monthly installment. It is partially made of principal amount and partially made of interest. These two components keep varying within the overall ceiling of the installment. In the initial stages of mortgage loan repayment, the quantum of principal in the equated monthly installment is lower. With each installment, this quantum increases, while the interest component decreases. There are different types of mortgage loan products available in the market. Interest rates, and term of repayment are the most important factors that affect the mortgage loans. Lenders come up with products that make it convenient for the borrowers to take mortgage
