Mortgage Calculators

Buying a home is one of the biggest and most important decisions you will ever make. Choosing to purchase a home is a huge financial investment, so you have to be sure you are capable of affording the expenses it entails.

So before you take that first step and apply for a pre-approved mortgage certificate, or complete a mortgage application, take advantage of the many online mortgage calculators available.

A mortgage calculator can help you determine how much you can afford, what your loan amortization will be, how much interest you will pay, help you compare mortgages, and also figure out how much you can save by consolidating your debts through a mortgage.

Here is a rundown of 10 different mortgage calculators you can use to determine your financial situation before applying for a mortgage.

Mortgage Loan Payment Calculator: This one will help you find out what your monthly payments will be based on your mortgage amount.

Mortgage Required Income Calculator: Want to know if you make enough money to buy a home in your ideal price range? This one will figure out how large a mortgage you can get.

Buy VS Rent Calculator: Buying a home means a lot of extra expenses that are not included in the monthly mortgage payment. If you currently rent, this calculator will help you decide whether buying a home is a viable option for you, and whether or not it’s really worth the extra expenses.

How Much Can You Afford? The mortgage amount you will receive is based on your income, the amount of your monthly expenses, and interest rates. This mortgage calculator will help you determine how much you can afford, according to your yearly income amount and the monthly debt payments you have to pay out.

Mortgage Debt Consolidation: Clarifies whether consolidating your debts through a mortgage will benefit you. It may help to reduce your payments and total interest costs.

Mortgage Points Calculator: Establish how paying points can reduce your interest rate and monthly payments.

Refinance Interest Savings Calculator: Discover if refinancing a mortgage is right for you.

Interest Only Mortgage Calculator: Learn if this type of mortgage will benefit and suit your borrowing needs, because it can provide flexibility during the first years of the loan.

Mortgage Comparison: Ascertain whether a 15-year or 30-year mortgage is right for you.

Adjustable Rate Mortgage Calculator: Establish what your primary monthly payments will be and what the effect of succeeding interest rate adjustments will have on your mortgage.

Before you venture online to make use of the available mortgage calculators, you will need to compile your financial information. You need to know what your yearly family income is before taxes. Also, what your monthly debt payments are. This includes rent/mortgage payments, credit cards, loans, vehicle payments, etc. Your housing costs should not exceed 28% of your gross income, while debt payments cannot surpass 36% of your gross income.

Assessing the amounts of your income and debt will help you determine the appropriate amounts to enter into the various mortgage calculators, and verifying that the amounts you enter are correct is extremely important in finding out what you can afford.

Through the use of mortgage calculators, you can save a lot of time because you can avoid filling out paperwork and attending meetings with mortgage brokers, if you find that you will not be approved for the amount you are looking for, or if you simply decide that a mortgage is not right for you. Arming yourself with the knowledge gained from mortgage calculators, you will have peace of mind when you choose to apply for a pre-approved mortgage certificate or mortgage.