We have explained that a number of tools and calculators that help us to know how much we pay for our mortgages knowing certain information, such as the initial amount granted, the time for repayment and the interest rate.

Let’s see now a number of cases in which calculators can help us. To perform the calculations we use the calculators can be found online on the page of any bank.
Use mortgage calculators to compare mortgages

Before deciding on a mortgage, we should compare well with all possible options. With the tool for calculating monthly payments, we know which mortgage is most favorable to our interests. However, we must not forget to take into account opening fee for if varies greatly from one institution to another may be the choice of the lower fee is not always correct.
Use mortgage calculators to switch our mortgage lender

Once we have checked with the calculators that shares of the new entity are more beneficial, we calculate the amount we save on the total loan period, and subtracting the amount of commission of subrogation of the mortgage. If this commission still paying the balance is positive, it would be good idea to change our mortgage bank, or negotiate better terms with the current client to remain.
Use mortgage calculators to calculate the partial repayment savings

When we advance a number of what remains to pay our mortgage, we can easily reduce the time maintaining the same rates or reduce the monthly holding period. The calculators will tell us how much shortening the deadline for a given amount repayable (expressed in years and months) or how much we save each month in fees if we keep the term.

Normally, it is more the former, reducing the time maintaining the same rates, since it saves more than in the second, reducing the monthly holding period, being less subject to the time the mortgage interest payments.

Here also will be important to the quantities that we charge for partial cancellation fee.
Example of using mortgage calculators to calculate the partial repayment savings

Here is an actual example using the calculator to write-downs of a well known financial institution:
Outstanding Capital 33,703.54
171.09 Monthly
Shares outstanding 429
5.106% Current interest

As we see, the mortgage was constituted 40 years. The borrower, as their financial situation is good, he decides to partially repay the mortgage with a savings of 6000 € at its disposal. Consider the two options you have:
1. Reduce the time and keep the same share

The new location will be:
Capital pending amortization 27,752.30
Monthly 171.09 (we keep the same)
Shares outstanding 276
Total amount to settle 6032.40

(Here are included the interest due the month in which we are until the day of redemption and the partial cancellation fee).

Therefore, with these savings get € 6032.40-time payment of 153 months, ie 12 years and 273 days. In those months we had paid 153 x € 171.09 = € 26.176.77 (provided the interest is fixed). That is, we saved € 20,176.

Actually, we should value those future monthly capital to date, and to discount the influence of interest rates. The capital is always compared to the same point in time so that comparison is correct. That is, as not worth 100 € to 100 € today in 10 years. But to show that the savings that we assumed a partial write is attractive, that cancellation fees are not to influence the decision, and to reduce time is better than lower fee, the calculations are valid.

Finally, to note that although these 6000 € to repay rent will stop in the future, we assume that the cumulative return we get to the end will be lower than the interest we pay, because as a rule, the interests of a loan over its lifetime are greater than the return on that capital over the same period. Otherwise, banks would invest all the money instead of lending it.
2. Reduce the fee and keep the term
Outstanding Capital 27,752.30
140.63 Monthly
Shares outstanding 429
Total amount to settle 6081.82

(Here are included the interest due the month in which we are until the day of redemption and the partial cancellation fee).

In the time remaining, we will pay 429 x € 140.63 = € 60,330.27. If we had not depreciated, would have to pay € 429 x 171.09 = 73397.61. The difference is € 13.067.34

As we see, the committee for partial repayment is very low (about 1%), and does not affect too much on the decision to write off or not. If this money really have it as surplus, it is worth amortization. And with the calculations show that the best option when we can maintain the current quota period will be to reduce, as the final savings is far superior to that achieved if we reduce quota.