Being a private mortgage lender and investing your capital in other people's mortgages can be a very satisfying as well as profitable business.

However, when you start to look at a foreclosure loss type of mortgage calculator, then things are not going so well, and your investment is in jeopardy.

Unless you allow the mortgage to go into too much arrears before foreclosure, you should still make a profit on it. By using a mortgage calculator that calculates many variables you can ensure that you don't lose too many months of interest and therefore accrue less profit.

If your investment does pay off, however, should you continue to invest your capital or prepay your mortgage?

Figuring out whether to invest or to pay down debts is tricky. A mortgage calculator can show you how much your monthly payments would change if you replaced several debts with either a home equity loan or a new mortgage. If you have a large amount of debt, then refinancing to get control of debt should probably be your first move.

Whichever way you look at it, using your capital in some form of investment account or as prepayment against your mortgage, you are putting your money to work.

A mortgage calculator, specifically a prepayment versus investment calculator, will help you decide which method works most efficiently for your situation.

Karen Kirby has over 25 years' experience in the computer industry, an MS in Computer Science, and a BA in Honors English. She has been helping people with Internet marketing since 1995. For more information on mortgage calculators for investment and prepayment see http://mortgagecalculator.eworldresponder.com/mortgage-calculator-decision-to-prepay-or-invest.htm -- be sure to get a free copy of the "Internet Marketer's Guide to Free Traffic" at http://www.aimbright.com/ebook/ Copyright 2006 - Karen Kirby. All Rights Reserved Worldwide. Article Source: http://EzineArticles.com/?expert=Karen_Kirby