Specialty Mortgage Calculators Crunch Financing Numbers by Broderick Perkins Finding on-line mortgage calculators to make rent-vs.-buy, early-loan-pay-off and how-much-can-I-afford analyses is a breeze. But what if you've got a first and a second mortgage and can't decide if you should roll them into one new first mortgage or refinance them both? If you need $50,000, do you sign for a cash-out refinance or tap your equity with a second mortgage? How will a large down payment play out financially in a purchase mortgage? Should you opt for a lower down payment and pay mortgage insurance? Should you take out a second mortgage to avoid mortgage insurance? Don't expect your lender or broker to do the math -- unless they've bookmarked a set of online specialty mortgage calculators developed by Wayne, PA-based Jack Guttentag, "The Mortgage Professor" and Seattle-based Charles Freedenberg of DecisionAide Analytics. Offering a growing number of difficult-to-find but eminently useful mortgage and finance calculators, the partnership fills an online gap that often engulfs many mortgage consumers. In just a few minutes, the calculators provide quick answers to tough questions. Two for two or one With interest rates below 8 percent, numerous consumers who've tapped their bulging equity bank are now trying to decide if moving to a new first or new first plus a second will save them the most cash. "Refinancing Two Mortgages to Lower Costs" lets you compare rates, points, loan terms and even throw into the mix how long you expect to be in your home, refinancing costs, your income tax bracket, mortgage insurance costs and other data. The calculator compares the total cost of retaining two existing mortgages with the cost of refinancing into one or two new mortgages, over a specified period. Cash-out or refinance For those who haven't tapped their equity, the burning question is how to do so for less. "Refinance to Raise Cash or Take Out a Second Mortgage" compares the total cost of a new fixed-rate cash-out mortgage with the cost of taking out a second mortgage and retaining the existing loan, depending upon how much equity you need to snare. Generally, borrowers with mortgages signed just a few years ago at rates significantly below current rates would do much better taking second mortgages than refinancing. The coin flips with older mortgages with higher rates, Guttentag says. Calculations for buyers The purchase mortgage quandary often involves numerous decisions about one loan. For borrowers with more than enough cash down "Rate of Return From Investing in a Larger Down Payment" will help you determine the pay off for putting more or less down. For borrowers with smaller down payments "Pay For Mortgage Insurance or Take a Second Mortgage" compares two options: paying mortgage insurance on a a fixed-rate mortgage, or avoid mortgage insurance with a combined 80 percent first-and-second mortgage. Also, "Pay For Mortgage Insurance or Pay a Higher Interest Rate" will help you determine if paying mortgage insurance on a fixed-rate mortgage, or paying a higher interest rate to avoid mortgage insurance is the better deal. The Web site's 24 calculators also provide bottom-line answers about additional principal payments to shorten the term, refinancing, when to buy, affordability, monthly payment levels by loan type, amortization schedules, interest costs, lenders fees, points vs. rates and loan cost comparisons based on loan terms. Guttentag and Freedenberg have done a fine job collaborating on a set of rare specialty mortgage calculators home owners and buyers aren't likely to find elsewhere. | 
