Section 5 _CALCULATORS
& TOOLS…Enter Your Numbers!
We
have customized THE LEARNING CENTER to provide
you with financial tools which will empower you to gain knowledge
about your financial life and to reach for the possibilities available
to you.
It has been said, "knowledge is the
foundation of wisdom." We are dedicated to your accomplishing
wise and prudent decisions. In your quest, we are here for you!
1STOP Solutions for Your Informed Choices.
As you use the
following 12 specialty Calculators
assembled here for you, it is important to know that in today's
mortgage industry, there are exceptions to every rule and every
Calculator. That's why it's so important to work with a mortgage
professional who does this work for a living and has experience
with the complexities and multiple guidelines of the thousands
of variables in lending which are in constant transition as economic
conditions experience daily changes.
Web Calculators Just
Know Numbers…Not You!
by Patricia A. Allen
It's difficult to comprehend that it has just
been a few years since multiplication tables and old-style adding
machines were used to calculate monetary values. How quickly we
moved from the old adding tapes and well-worn charts to hand-held
calculators! Now, it's "move over…the easy way is here…I'll
do it on my PC!"
Years ago, a knowledgeable construction superintendent
told me that in building something to specifications, ALL
involved in the project had to have the same measuring instruments,
down to not only the same brand, but to the same manufactured
lot of that brand, as there were critical variances in "mixing"
the measurement devices. If everyone were left to their own "devices,"
calculations being "off" became more obvious as the
project developed, and the structure would become unsound.
Granted, we're not talking about building
a house here; however, we're talking about something much more
important…building financially viable lives. Keep the following
guidelines in mind when using online calculators:
- Web Calculators CANNOT compute ARM
(Adjustable Rate Mortgages) or Hybrid (Mortgages with custom-mixed
options) beyond the initial fixed rate term (for example,
3/1 arm with 3 being the fixed period; 5/1 ARM with 5 being
the fixed period, etc.) Further,
hand-held calculators are equally unreliable, as the future
adjustments to these loans have not occurred, and cannot be
predicted as future fixed rates are based on future prevailing
rates which cannot be predicted with accuracy. Adjustments,
depending on the mortgage type, may occur in 1, 6, or even
12 months…and traditionally in 3, 5, 7, or 10 years.
- Web Calculators CANNOT take into
consideration the TERM of your new Refinance Loan as related
to your current mortgage's term and the length of time you
have been paying on it. They
succeed in calculating monthly payments of a new mortgage
as the payments relate to the "recapture" period
of costs, whereas to determine true savings, you have to think
beyond the break-even point. We can be of specialized assistance
to you in customizing these variables to not allow "repeat
payments," but true cost savings OVERALL.
- Web Calculators CANNOT
anticipate Unknowns in any term loan programs.
Some of those Unknowns are: What percentage of P.M.I. an Underwriter
May assign after assessment of risk levels in funding the
mortgage; and, What the rate increase is on a N.O.O. (non-owner-occupied)
property after underwriting. Further, Web Calculators CANNOT
correct the Users' inaccurate input.
HOPE WE HAVEN'T DISCOURAGED YOU!
Web Calculators CAN be Great Tools to give you Approximate
Insight into your options, and can be really enjoyable. That's
why we have provided them for you. However, NOTHING takes
the place of talking to a real-live person who can help you with
real-life decisions. We've said it before: We match People with
Possibilities. This is what we do best.
The
On-Line Planning Tools You've Been Waiting for!
