In today's economy budgeting is very important, especially whenever someone decides to purchase a house. Using a budget calculator can be a very useful tool especially for a first time buyer. A mortgage is only one factor of a buyer's budget. The mortgage calculator will help the buyer understand how the monthly payments are affected by the interest rates. Sometimes a more sophisticated mortgage calculator or budget calculator will give the first time buyer a more realistic picture of their total expenses.

There are things that must be considered such as the escrow account which in Ireland normally includes the property tax and insurance. In Ireland, the typical mortgage process can be lengthy in showing proper documentation and means to buy a house. A first time buyer will typically underestimate the expense of owning a house. The budget calculator or mortgage calculator will help them by giving them a realistic cost of owning a house and save them time from a denial which in Ireland normally involves providing or updating information when you reapply.

A mortgage is not something to be entered into lightly. This is an agreement with the bank that could span ten, fifteen, twenty, even thirty years. This is not like renting a house, in a year a person cannot just decided to downsize if their finances have changed. Many people have overextended themselves and cannot even sell their house.

A mortgage calculator will give you a more precise estimate of your expenses and help keep you and your family safe from the stresses that come with a foreclosure. There are many other expenses that first time buyers tend to overlook. Items that are often not thought of include appliances, electrical work, roofing, and plumbing. These items are not the responsibility and definitely not expense of the renter. When you become a home owner these type of expenses rest on the home owners shoulders. Buying a new home versus an old home cannot guarantee a buyer peace of mind. Although a new home will not normally require roof anytime soon, appliances, plumbing and electrical issues are not uncommon especially if the builder is not as reputable as home owner once thought. These expenses can easily climb into the thousand in a matter of months if not days.

The main point of this article is to explain how important knowing every cost of owning a new home. A first time homebuyer cannot simply calculate the amount the mortgage will be each month. They must calculate escrow payments, one off repairs and maintenance and even the occasional roof. Without a proper budget this can turn into a nightmare of debt. By taking advantage of a budget calculator the home owner can better estimate their costs and even budget for savings for those unexpected events in their life.

The hope of this article is that every home buyer takes the time to perform the proper due diligence when purchasing a new home. A new house can be a burden or a gift, for those people who are prepared it will be the biggest investment of their life, for those who do not it could lead to their financial ruin. Be prepared and have all the right information!