Using a Mortgage Calculator for Individual Requirements
- Author Kim Chambers
- Published April 2, 2010
- Word count 414
When considering a mortgage, many potential homeowners are urged to use a mortgage calculator to estimate costs and work out which home loan would be the right one for them. These are indeed highly effective instruments, as they are able to subject mortgages’ many different costs and interest rates to scrutiny and to compare them with each other – a task which would be a real strain for the average layperson.
A mortgage calculator is useful to potential homeowners in many different ways, depending on their personal situation. If an individual is currently renting a property and is considering making the big shift from renter to mortgage-holder, then the mortgage calculator is invaluable when it comes to working out whether they will save money by taking out a home loan. The instrument compares their hypothetical mortgage payments to their current rent levels. However, there is one caveat here – a mortgage calculator does not tend to include extraneous costs like taxes and insurance, and it is sensible for the potential mortgage-holder to factor these into the total themselves.
If someone already owns their own home and is seeking a good refinancing deal, then a mortgage calculator is very useful when it comes to working out what their new set of mortgage payments would be given the latest interest rates. A mortgage calculator tends to have a search function for mortgage rates in different areas. If the homeowner’s current mortgage rate is also entered into the instrument, then they will get a pretty accurate idea of the new rate of payments.
The most pressing question for a potential mortgage customer is whether they will be able to afford it. Many people set their sights on a property without properly considering this, and a mortgage calculator can put things into perspective. Generally speaking, monthly mortgage payments should work out at less than 30 per cent of a customer’s monthly income before tax. With the help of a mortgage calculator, they will be able to see if this is possible.
Some homeowners who are lucky enough to possess enough equity in their property are able to consider a cash-out refinancing deal, the cash sum from which can be used to consolidate other debts or pay the bills. However, this is not the right path for everyone. Using a mortgage calculator , people can enter the amount of the new mortgage that they are considering and the probable interest rate – the calculator will then reveal whether the plan is viable.
Kim enjoys writing articles on various financial related topics, including Mortgages and Different kinds of Insurance.Article source: http://articlebiz.com
There are no posted comments.
- How To Pay Off Your Mortgage in 5-7 Years
- How To Remove a Bankruptcy From Your Credit History
- What Credit Score Will Get You A Mortgage?
- What are CAP rates (and why should I care)?
- Exactly how to Select the most effective and also Right Billing Factoring Company?
- How to remove your name from debt review
- How to Choose the Right Mortgage
- How To Find The Right Texas Mortgage Lender
- How a Mortgage Lender Can Help You
- 5 Things To Expect When Meeting with An Investor
- Remortgaging- is it the best option?
- 4 Mistakes You Should Avoid When Listing With An Agent In San Jose
- How to Create Marketable Commercial Mortgage Notes
- Here’s How Debt Consolidation Can Help You
- Home Loan Programs: How Recent Medical School Graduates Can Qualify
- VA Home Loan Programs: How Veterans in Need Can Benefit
- The 30-Second Trick for Australia Mortgages
- Reap Huge Benefits from USDA Home Loans
- Many Benefits of Veteran Loans
- All You Need To Know About HUD 184
- Are House Prices Canada's New Successful Birth Control?
- FHA Lowers the Monthly Mortgage Premiums - Should You Refinance Your FHA Loan?
- Credit Card Basics: How and When to Use Them
- Who Can Benefit from an Offset Mortgage?
- Top 7 Tips for Buy to Let Mortgages
- Over One-Third of Income Spent on Mortgages or Rent in Many Households
- Tips for Mortgages
- Basics of How to Compare Loans: Understanding Index and Margin in Adjustable-Rate Mortgage Loans
- Analyzing the Terms and Conditions for a Mortgages Comparison
- How to Maximize the Way You Use Your Visa Credit Card