How Can A Mortgage Calculator Help Me?
When searching for the perfect home, using a mortgage calculator enables you to estimate, based on your circumstances, your monthly payment. While there is a lot more to calculate into a mortgage than even most calculators take into account, it is a great tool to provide a ballpark figure to give you an idea of what mortgage payment amount you can afford. And while each mortgage represents a different set of circumstances that ultimately requires the guidance of a professional Mortgage Broker, a good mortgage calculator can give you a great starting point.
Ready to look at your future mortgage?
Let’s take a look at one helpful mortgage calculator our clients use and can be found on our website.
Our mortgage calculator allows you to enter in your hypothetical mortgage details. You can use a house you like from an online real estate listing, or use the amount for the average home in the neighborhood where you would like to live. Don’t be afraid to play with the numbers and see what the monthly payment will equal. Pretty soon, you may even be able to identify some patterns.
The calculator fields include the property value, down payment, interest rate, term (in years), and date you want to start your mortgage. There is also even an area to calculate your HOA (Homeowner Association) fees, home insurance and property taxes. The calculator allows for a specific dollar value, but you can also use relative percentages. For instance, one-time expenses, also known as closing costs, typically run about 3-5% of the property value.
You’ll find a useful feature for extra payments to assist you with paying your mortgage off more quickly. Below that will be a breakdown of your total monthly payment and your payment schedule. If you opt for a home on the lower end of your budget, then the racetrack to pay it off becomes much shorter. Compare the costs of buying a more expensive home against paying off a home that’s a little more budget friendly. The difference in years may just be worth it for you!
The mortgage calculator is great for assistance with financial planning and meeting your financial goals. You can plan for how additional weekly, monthly, quarterly or annual mortgage payments can decrease both how long it takes to pay off the mortgage as well as the overall amount paid on the mortgage.
You also can compare how different rates and loan types, such as an adjustable rate mortgage, can impact your payment.
One big perk future homeowners find with the mortgage calculator is to determine if you have enough equity in your home to drop private mortgage insurance (PMI) and lower your monthly payment. Once you hit the magic 20% threshold, you can reach out to your lender and ask them to drop the private mortgage insurance.
While quite helpful, always remember that the calculator is simply for estimates. If you have questions or want a more firm assessment of your mortgage prospects, reach out to one of us here at Range Lending. We are excited and happy to assist you with your mortgage needs!
