If you are planning to purchase a new home in the near future, most likely you will need a mortgage. A mortgage is a loan given by a bank, mortgage company or other financial institution for the purchase of a residence—either a primary residence, a secondary residence, or an investment residence— in contrast to a piece of commercial or industrial property. In a home mortgage, the owner of the property (the borrower) transfers the title to the lender on the condition that the title will be transferred back to the owner once the final loan payment has been made and other terms of the mortgage have been met.
The use of a mortgage calculator can be very helpful when trying to figure out monthly housing payments, how much one can afford, and how one should structure a mortgage. Visit the Consumer Financial Protection Bureau if you are in need of additional support. They produce innovative tools and resources to help consumers like you make informed financial decisions and build financial skills.
There are a number of different mortgage calculators available that serve all types of different purposes. Some are very simple, while others are very involved, including things like property taxes, homeowners insurance, HOA dues, and so forth.
You may want to start with the classic mortgage monthly payment calculator, which allows you to calculate a monthly mortgage payment. This basic tool is quick-and-easy to use, but does not include PMI or property taxes.
An advanced mortgage calculator is also available if you are looking for a more in-depth payment estimate. This full featured mortgage calculator allows you to input home value, principal, interest rate, loan term, start date, property tax, HOA dues, homeowner's insurance and PMI. Its output features includes loan breakdown graphs, loan summary, repayment charts, discount points, monthly amortization tables, and more.
If you’re a first-time home buyer or a seasoned pro looking to buy a second or third home, the mortgage affordability calculator can help with narrowing down your real estate search.
If you’re already a homeowner and have an existing mortgage, you can check out this refinance calculator, which will factor in your current home loan and proposed refinance loan to determine if it’s more or less a good deal. It really depends on a person's unique situation whether or not it is a good choice to refinance. So taking some time to figure out the numbers would be a good idea.
Once you have made a decision on the home you will purchase, you might wish to pay off your mortgage early or by a certain date. This is certainly an option. The mortgage payoff goal calculator allows you to plug in extra payments in a variety of different ways to see how quickly you can pay off your mortgage as well as how much interest you can save on interest.
One last thought, prior to purchasing property you’ll need to know your debt-to-income ratio. The debt-to-income ratio calculator is handy to tally up your monthly debts and proposed housing payment and then compare the sum to your monthly income.
Have you used mortgage calculators to help with purchasing property?
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