How Does a Loan Calculator Work?

Video Transcript

"Hi so you are thinking or wondering about how does a loan calculator work. Well I'll be able to explain that to you no problem at all. My name is Adriel Torres and the owner of ultimate credit today dot com. Loan calculators are, there are quite a few. There's a simple loan calculator and mortgage loan calculator and those all can be found online by just typing in loan calculator. For instance lets say you want to know the payment on a loan. Well you are going to need three figures. You are going to need the rate on the loan, you are going to need the term which could be four years or five years, if it's a car, or thirty years if it's a mortgage. And you are also going to need the loan amount. Once you have those three figures you can plug them in accordingly into the loan calculator and the calculator will give you the loan payment. Now if it's in a home, you are also going to add your taxes and insurance to make the overall payment, on a car or a personal note, then obviously you don't pay that, you just pay the note, whatever depending on the rate and the term and that's how loan calculators work. Again thank you very much. My name is Adriel Torres I'm the owner of ultimate credit today dot com."