Friday, October 29, 2021

Using Financial Calculators to Build a Good Financial Foundation (Part Two)

We hope you enjoyed last week’s blog on Financial Calculators and what a useful tool they can be when making important financial decisions. It is hard to know if you should choose a 15-year or 30-year mortgage until you can actually look at the numbers and understand what difference that makes in your monthly payment amount and in the total interest you will pay on the loan.  Amortization can be complicated, and many financial questions may require some specific math formulas to answer. 

As a local bank at Lake of the Ozarks focused on the needs of our local clients, we believe making good financial decisions happens easier when you are fully informed and educated.  That is why First Bank of the Lake is so proud to offer the multitude of financial calculators on our website under the Resources tab.  This week, we will talk about several calculators related to mortgages.  We will also introduce you to calculators for figuring how long your retirement savings will last you, how much you will owe in income tax, and lots of tools to help you determine ways to set and meet savings goals. If you would like to know more about how to have instant access to the answers to these kinds of financial questions, keep reading this blog!  We think you will be blown away by the tools you have available to you at First Bank of the Lake.



Mortgage Qualifier

The first step in buying a house is determining your budget. The mortgage qualifier calculator takes the guesswork out by stepping you through the process of finding out how much you can borrow. You can calculate your mortgage qualification based on income, purchase price, or total monthly payment.

 

Mortgage Loan

Use this mortgage calculator to determine your monthly payment and generate an estimated amortization schedule. Quickly see how much interest you could pay and your estimated principal balances. Enter prepayment amounts to calculate their impact on your mortgage.

 

Refinance Savings Calculator

How much interest can you save if you refinance your mortgage? The Should I Refinance Calculator helps you find out. Enter the specifics about your current mortgage, along with your current appraised value, new loan term, rate, and closing costs. The calculator will determine how much interest refinancing can save you and if you should refinance your mortgage. In addition, it will calculate the number of months to break even on closing costs with your reduced monthly payment.

 

Bi-weekly payments

This calculator shows you possible savings by using an accelerated biweekly mortgage payment. Biweekly payments accelerate your mortgage payoff by paying 1/2 of your normal monthly payment every two weeks. By the end of each year, you will have paid the equivalent of 13 monthly payments instead of 12. This simple technique can shave years off your mortgage and save you thousands of dollars in interest.

 

Rent v. Buy Calculator

Should you rent or should you buy your home? It takes more than looking at your mortgage payment to answer this question. The Home Rent vs. Buy calculator helps you weed through the fees, taxes, and monthly payments to help you make a decision between these two options. This report is based on the original purchase price, fees, and taxes payable at that time. Insurance and tax costs can fluctuate from year to year.

 
Mortgage Comparison

Determining which mortgage term is right for you can be a challenge. With a shorter 15-year mortgage, you will pay significantly less interest than a 30-year mortgage - but only if you can afford the higher monthly payment. Use this calculator for a comparison of a 15 vs. 30-year mortgage.

 

Retirement Plan Calculator

Do you know what it takes to work towards a secure retirement? Use this calculator to help you create your retirement plan. View your retirement savings balance and your withdrawals for each year until the end of your retirement. Social Security is calculated on a sliding scale based on your income. Including a non-working spouse in your plan increases your Social Security benefits up to, but not over, the maximum.

 

Savings

The list of calculators to help you with savings goals is quite extensive.  What would you save if you brought your lunch rather than eating out during the workweek?  How long would it take to save a million dollars?  Or if you want to accumulate $10,000 in 5 years, how much would you have to save per month? How will your savings be affected by taxes and inflation?  All these questions and more can be answered using the calculators available under the Savings tab.


 

1040EZ Tax Calculator

The 1040EZ is a simplified form used by the IRS for income taxpayers that do not require the complexity of the full 1040 tax form. Simply select your tax filing status and enter a few other details to estimate your total taxes. Based on your projected tax withholding for the year, we then show you your refund or the amount you may owe the IRS next April.  There is also a calculator for marginal tax and a standard 1040 Tax Calculator.  

 

Financial calculators for all your financial needs.

All the calculators we have described, and more, are available on our website.  We encourage all our clients to see what is available and use the resources offered to inform their financial decisions.  It is easy to assume you are better off buying a home at Lake of the Ozarks rather than renting, but that isn’t always the case. It can feel like a 15-year mortgage is always better, but sometimes having a lower payment with the option of making extra payments may be safer.  The earlier in life people start thinking about these questions and planning their financial future based on the big picture, the more solid a foundation they can build earlier in life.  Who doesn’t want that for themselves and their loved ones?  

As a bank at the Lake of the Ozarks that is completely focused on putting your first, we are particularly excited about sharing these calculators with the young adults we know. If you know a young adult that is interested in learning how to manage and save money at the Lake of the Ozarks, let them know about the tools available on our website.  Showing someone how they can see their overall financial picture in light of their specific situation and goals can be one of the best gifts you can give them.  Best of all, it is a FREE gift of knowledge!  For all your financial and banking needs at the Lake of the Ozarks, we are here to help.  Feel free to reach out to us with any questions you may have and be sure to follow us on social media on the channels listed below. 




First Bank of the Lake - Striving For Excellence
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Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway

Suite 100
Osage Beach, MO 65065

(573) 348-2265


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