A home mortgage calculator is a free online tool that online mortgage lenders provide on their sites for potential customers.  Online mortgage calculators are designed to help you calculate how much your monthly payment would be at the current rate of interest on the size of loan you require.

Also, if you want to know how much you can afford to borrow, a mortgage calculator will help you calculate the maximum mortgage loan amount that you can afford to apply for and repay on an ongoing basis.  You will need to know roughly how much money you require to borrow.  If you are thinking about buying a new home, you should know the price ranges that the houses you like are selling for.  

Once you enter the amount of money you are looking to borrow (the value of the property less the deposit you have), you need to choose the length of time you want to take to pay off the mortgage. The term can be as long as 30 years, obviously the shorter the term you choose the less total interest you will pay.  Most sites have the annual interest rate already loaded in the calculator, but will also give you the options to input alternative interest rates.

Use this calculator to generate an amortization schedule for your current mortgage. Quickly see how much interest you will pay, and your principal balances. You can even determine the impact of any principal prepayments! Press the "View Report" button for a full yearly or monthly amortization schedule.