The Business Loan Calculator: The Unsung Hero For Real Estate Investors

A business loan calculator is one of the most efficiently used tools for tabulating figures when it comes to all different types of financing; whether investing in a car, a boat, or even applying for a student loan, getting financed is usually the first of many steps to completing each respective transaction. These types of small loans can give prospective borrowers a head start into the world of finance on a larger scale, which is when mortgage calculators will play an even larger role. When it comes to commercial real estate loans, having access to a business loan calculator may be an absolute imperative.

When dealing with small loans or otherwise, balancing many equations along the way will often require area-specific mortgage calculators to ascertain amortization or payment schedules, interest rates, and extra added expenses as well. Whether just getting started or looking to expand operations, commercial mortgage rates can easily be factored in with fixed-rate SBA loans, as to where adjustable rate contracts may require some additional number punching. Either way, knowing the estimated and/or the exact costs entailed with each loan setup will usually necessitate the use of a business loan calculator.

Start-up commercial mortgage property proceedings will often entail the whole nine yards when it comes to figuring out origination fees, closing costs, and everything else in between. It’s a good idea for those getting their feet wet to employ the use of the many different mortgage calculators. These can be found on a number of websites dealing in commercial real estate loans.

In fact, most any business that deals with financing will provide its own free-of-charge setup for potential customers to play around with. While each respective business loan calculator display will often vary in scope, first-time investors will be able to see how these devices work in a general sense and eventually get a better feel for all that’s entailed.

Some mortgage calculators are capable of keeping track of extra expenses, while others are able to perform bare-boned functions only. Business owners looking to build from square one via SBA loans can easily find specialty calculators capable of factoring in construction material costs, labor, and inventory. Those taking out small loans will be able to budget accordingly without overextending themselves. Although business loan calculator functions will vary from site to site, helping company owners secure the bottom line remains the primary objective, while attempting to recruit new clients is also a welcome byproduct.

For those whose small loans have managed to build some equity, refinanced commercial real estate loans will also require some additional math. In many cases, experienced company owners looking to expand their services will have increased inventory and new hires in order to cover the workload.

Keeping track of both may only be the beginning; once again, using a business loan calculator for equity loans will help ease the burden for proprietors in a few areas. First off, commercial mortgage payments will have likely decreased; secondly, the interest rates can often be monetarily advantageous as well. Whether starting a business or looking to expand operations, mortgage calculators are necessary tools along the way to achieving sustained success.

At the present time, a number of SBA loans are tailored to suit each phase of the borrowing process, meaning that the Small Business Administration is more than interested in the success of those who use their small loans in order to prosper. A business loan calculator seems to be an integral tool of the trade, from start to finish.

Know Everything About Owner Occupied Home Loans Before Buying Your Primary Residence

Owner occupied home loan is a type of mortgage that is offered by lenders and credit providers to those people who desire to buy a house and use it as their primary residence. Such loans are offered to home buyers who want to use the property for dwelling and not for investment purposes. Most lenders offer favourable rates on owner occupied home loans because they assume that the owners will take better care of the house than the tenants.

Owner occupied property finance is available for those people who are:

>> Searching for their first home to live in and want to use it as primary residence, or

>> Looking to sell their current home and buy another home to live in and use it as primary residence

Now if you are looking for an owner occupied home loan, you must know the list of homes that lenders and credit providers consider as acceptable owner occupied real estate security:

>> Free-Standing Residential Detached Homes

>> Semi-Detached Homes

>> Terraced Housing

>> Townhouses

>> Duplex Homes, and

>> Flats (also called “Home Units”)

Now that you know about the acceptable properties, you can start managing your personal finances and begin the process of obtaining owner occupied home loan. You can take help of a professionally qualified and expert finance broker who has a thorough knowledge of the finance industry and also knows what the standard requirements are for getting an owner occupied home loan.

The finance broker will prepare a “Home Loan Checklist,” to help you understand your financial limitations and he/she will help you to get a pre-approved home loan. Here is a list of what the finance broker will do. He/she will:

>> Look at your overall financial position and prepare a budget for you

>> Use a “Borrowing Power Calculator” to work out – how much you can borrow and how much your repayments might be
>> Work out how much of a deposit you will need to get owner occupied property finance

>> Advise you if you should fix your home loan for a fixed period (e.g. one, two or three years) or if you should take a variable product, or if you should take a combination of fixed and variable

>> Advise you what documents you have to provide to get a home loan

>> Advise you if Lenders’ Mortgage Insurance (LMI) is payable

>> Advise you what stamp duty and other related fees will incur

>> Confirm if you are a first-time home buyer as you may be eligible for a one-off payment through the governments’ First Home Owner Grant (FHOG) scheme (see firsthome.gov.au), and

>> Obtain pre-approval for you, which will put you in a stronger negotiating position with the vendor or real estate agent

An expert finance broker will do all the work for you and make sure that you obtain quick pre-approval. So, it is ideal to employ the services of a reputed finance broker because it will save you from all the trouble of finding the best finance package for you primary residence.

Tips on How to Repay Your Loan Sooner

How Can I Make My Loan Disappear Sooner?

Many people ask this question because they want to complete their financial obligation quickly. They don’t want to spend their hard-earned money on interest payments. I consulted a number of professionally qualified and expert finance brokers and they suggested some simple steps to help you reduce the life of your loan and lower your interest repayment, such as:

1. Make More Frequent Repayments

Making weekly or monthly repayments can take months or even years off your loan and can also help you save thousands of dollars in interest payments.

2. Setup Your Repayment Period

If you setup your repayments to coincide with when you get paid, it will help you to pay off your loan sooner (e.g. if you are paid fortnightly you should set up repayment period as fortnightly).

3. Deposit Any Spare Cash

If you have any spare cash, you must consider depositing this spare cash into your loan account as a lump sum payment.

4. Have Your Salary Directly Credited

Having your salary directly credited will reduce your loan amount considerably over time.

5. Do Not Lower Your Repayments

If your minimum regular loan repayment drops as a result of falling interest rates, you should not lower your repayment. By maintaining your current repayment, you will pay off your loan sooner.

6. Increase Your Loan Repayments

If you have the flexibility in your loan account to allow you to increase your loan repayments, you should consider this option, particularly after a pay-rise.

7. Use 100% Offset Account

If you have the capacity to link your loan account to 100% offset account, you should take advantage of this as this has the overall effect of repaying your loan sooner (e.g. if your mortgage is $400,000 and you have $20,000 in the offset account you will only pay interest on $380,000).

8. Pay More Than The Minimum Repayment

Just pay a few extra dollars each month when you make a repayment and you will be surprised as how quickly this all adds up.

You can use an “Extra Repayment” calculator to work out for yourself what your extra repayments might have on your loan. The Extra Repayment calculator is a very useful calculator which will help you to calculate, how many times and how much interest you can save by paying more than your minimum repayment.

Example of how the Extra Repayment Calculator works

Example: The benefits available to you in making the extra repayments are best illustrated in the following example. The example assumes that you are willing to contribute an additional amount of $200 towards your weekly repayments:

Loan Amount: $530,000

Normal Loan Term: 30 years

Interest Rate: 5.00%

Repayment Frequency: weekly

Normal Weekly Repayment: $656

Additional Weekly Repayment: $200

Interest saved by making additional or extra repayments: $217,815

Time in years saved, by making additional or extra repayments: 11 years 10 months

So, this is how you can repay your loan quicker and save money. If you have doubts regarding repaying your loan quicker than usual, you must use the calculator or consult a finance broker. He/she will guide you through your options in repaying your loan sooner.