Mortgage Calculator Me Logo
mortgage calculators categories
Second Mortgage Loan
Home Equity Loan
Debt Management Support
Credit Counseling At A Glance
Repair Bad Credit Rating
The Power Of Real Estate Exchange
The What, Why, And How Of Real Estate Leverage
The Mortgage Calculators
Residential Real Estate Appraisal Key Terms
Basic Residential Real Estate Appraisal
mortgage calculators categories
search categories
 
Web This Website

mortgage calculators bread crumb home > Blog

The Truth On Loan Amortization Calculator

The loan amortization calculator, which creates the spreadsheets of principal, interest, and balances on each payment period, provides a big picture on how the mortgage will turn out. The mortgage payment covers the principal and interest. In the life of mortgage, the balance decreases as the borrower makes regular payment. Thus, the borrower sees for any chance of negative amortization. A negative amortization is a point in time when the payment is not enough to cover the principal and interest.

To a mortgage dictionary, the amortization means the repayment of mortgage thru installments of regular payments. And, the loan means the sum of money that lender lends to the borrower to be repaid on a specified period. It is also good to know principal, and interest rate which are use to calculate the mortgage payment. The principal means the face value of the mortgage, while the interest rate means percentage of the balance to be paid.

The biggest advantage of loan amortization calculator is to see the mortgage tax deduction. For each payment period, the calculator computes the mortgage interest. The mortgage interest tax deduction is one of the potent tax deductions for homeowners. For the latest news on mortgage interest tax deduction, you may want to refer to Internal Revenue Services (IRS).

Actually, the lender sends form 1098 to the borrower. The form shows the total mortgage interest for the entire year. The borrower places the total mortgage interest to Schedule A Form 1040 of the income tax return.

To qualify for the tax deduction, borrower must fill out Schedule A Form 1040, liable for the loan, and secures the debt. Only the actual borrower, who pays the mortgage and owns the home, can claim the tax deduction. To secure the debt, borrower can use mortgage, deed of trust, or land contract. The mortgage, deed of trust, or land contract ensures the repayment of debt in case of default of mortgage payment.

The mortgage interest of any home, that includes sleeping, toilet, and cooking facilities, qualifies for mortgage tax deduction. So, the house, condominium, cooperative, mobile home, house trailer, or boat house usually qualifies for tax deduction. Furthermore, the home is the first and second home of the borrower.

To conclude, the loan amortization calculator helps the potential mortgage borrower to see the overview of the life of the mortgage. Seeing the amortization schedule, the borrower can tell how he wants the loan to work. The amortization schedule even tells the mortgage interest tax deduction. For the complete information on mortgage interest tax deduction, you may want to consult IRS. The laws and regulations change all the time. Especially, there are talks of removing the mortgage interest tax deduction.

0 Comments:

Post a Comment

<< Home


Tags: morgage calculators, morgage calculator, morgages_, morgages, morgage, mortgage claculator, mortgage calcutator, mortgage caculator
mortgage calculators categories

Mortgage Calculators

Read about articles, facts, real-life stories, resources, and tutorial on mortgage and real estate.

list of partners
mortgage calculators categories
How do you subscribe to Mortgage Calculators Blog
blog xml
Subscribe in NewsGator Online
Add Mortgage Calculators Blog to Newsburst from CNET News.com
Add to My AOL
Subscribe in Bloglines
Add to netvibes
Add to Bitty Browser
Add to Plusmo

Copyright (c) 2005-2009 MortgageCalculatorMe.com. All Rights Reserved.

Information and calculation provided on this mortgage calculators website is for general purposes only. It is not intended to take the place of advice from your mortgage brokers.