A Chattel Mortgage Calculator is a great tool to assist in working out your budget prior to shopping for your new business use vehicle.
What To Look For With A Chattel Mortgage Calculator?
As Chattel Mortgages are business use loans, there are a few different options with how you structure your Chattel Mortgage in comparison to a standard car loan.
Of course the most important function a Chattel Mortgage calculator should have is the actual amount you wish to borrow.
Your Chattel Mortgage calculator should allow you to select loan terms from two to five years as a minimum and if the calculator allows up to seven years, this is even better, as there are lenders in the market that do seven year Chattel Mortgages.
The Chattel Mortgage calculator should allow you to select an interest rate, so you can compare with what is available as an estimation of what interest rates are available at that present time.
A good Chattel Mortgage calculator will allow you to select the balloon amount as either a percentage of the loan amount, or as a dollar amount that you wish to select.
A balloon payment is a lump sum payment left as a final payment, which will reduce your monthly instalments by offsetting the payments with that final payment. A Balloon payment will incur more interest charges over the term of the loan than if you had no balloon payment, so do be aware of this.
Payments In Arrears Or Payments In Advance?
As a Chattel Mortgage is a business use loan, you may have the option to select your first payment to be in arrears or advance. The difference is whether you make your first payment on the day the Chattel Mortgage settles, or if you made your first payment one month after the Chattel Mortgage settles. Quite often this is confused and at times not highlighted to the client and a Chattel Mortgage calculator with this function is good to be able to see the difference in payments.
A good Chattel Mortgage calculator with these functions will assist in you making the most informed decision and to keep any lenders or credit assistance providers honest, as most Chattel Mortgage contracts to do not show the interest rate on their agreements.