Buying a home is one of the biggest steps you will take in your life. Not only are you establishing where you will call home, but you are also making a major investment in your financial future – and likely taking on a big payment. Make sure that you fully understand the costs you are facing by using our mortgage rate calculator.
Mortgage calculators help in several ways. They help you estimate your monthly payments, and they also give you a better idea of how different loan terms will impact you.
This is great place to start. To determine the amount you can afford to finance, plug in how much you can afford to spend on a down payment, the interest rate you expect to receive, the mortgage term you are considering, and the maximum payment amount you feel you can easily swing. Our mortgage calculator will take care of the rest and show you just how much home those figures will get you.
You can also use our mortgage rate calculator to examine the impact that different types of loans will have on your finances. Just enter the maximum loan amount you received from step one, along with your desired down payment and expected interest rate, and then select the loan type. With the click of a button, you’ll be able to see how different loan types impact your monthly payment.
You should also consider the impact of loan terms on your monthly payments. Going from a 30-year term to 15 years (or even 10) will certainly increase your monthly payment, but you will pay off your loan in much less time and you can save a considerable sum on interest. Generally speaking, the longer your loan term, the smaller your payment but the higher your interest rate.
The more money you can put down on your home loan, the better. Your payments will be less because you are financing a smaller sum and you can also save money on insurance. When you bring less than 20 percent of the home’s value to the table as a down payment, you will probably be asked to purchase mortgage insurance – and that can really drive up your monthly payment, so do the math first.
When you are ready to pursue a new home purchase or refinance your existing home, please reach out to one of our professional mortgage brokers. You can find a friendly, local broker at the following link: VIP Mortgage Broker.
Bankrate, “Mortgage Calculator,” Bankrate. [Accessed: http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx]
NerdWallet, “Mortgage Calculator,” Nerdwallet. [Accessed: https://www.nerdwallet.com/mortgages/mortgage-calculator/calculate-mortgage-payment]
Zillow, “Mortgage Calculator,” Zillow. [Accessed: https://www.zillow.com/mortgage-calculator/]
Photo by Andrew Branch