When you sign for a mortgage and you move into your new home, you are expected to pay a monthly rate based on whatever terms and whatever mortgage rate you accepted. This is usually dependent on your credit score, how much money you make, the value of the home and other factors that the mortgage company considers when it comes up with your monthly payment. Sometimes you may have a mortgage where you have to pay the loan plus interest back. However, sometimes you can also find an interest only mortgage loan where you pay on the interest until a set time. When you have an interest only loan, you want to make sure your interest rate remains constant and that you re not going to experience a jump in your monthly payments. And even if your rate stays the same, you want to make sure you can afford the home you re going to buy. You can do this by using an interest only mortgage calculator. You simply fill in the numbers and figures it asks for and you ll be presented with your estimated monthly note so that you can determine whether or not you ll be able to afford that home.
Jumping Rates
Some mortgage companies will offer low rates at first to entice new buyers to come into signing for a new home. Then, in a few months that rate will jump. This often surprises new home owners who aren t expecting their rates to jump so high. So make sure you read the fine print after using the interest only mortgage calculator so that you are prepared for whatever s to come.
Talk To Your Loan Officer
When you have used the interest only mortgage calculator and you ve decided that the monthly rate is affordable, talk to the loan officer at the company or the bank you re dealing with to discuss the terms, the rates and other factors you may be wondering about. They will look at the interest only mortgage calculator and will then determine if the results are accurate. They will only be able to tell you the correct interest rate after running your credit but the interest only mortgage calculator should give you an idea of what you ll expect.
The purpose of using the interest only mortgage calculator is so that you can determine whether or not you will be able to afford the house you re looking to buy. It may be helpful to use several different interest only mortgage calculators from various companies so that you can determine which one will give you the lowest rate so that you don t overextend yourself financially.