Category: mortgage

Use A Home Mortgage Calculator So You Don t Overextend Yourself

Every time you look on the news, read the news on the internet or open a newspaper, you see people getting foreclosed on. People are losing their homes left and right. Why are people suddenly finding it difficult to pay their mortgages? It s probably because they didn t plan correctly. They signed the dotted line without really thinking things through. They got caught up in the moment of finally being a home owner that they never considered that one day they d be unable to pay their monthly notes and the foreclosure notice would arrive in the mail or get tacked up on their door. Don t become a statistic. If you re going to buy a home, make sure you stay in that home until you re ready to sell it. You can make sure you don t overextend yourself by planning accordingly and by using a home mortgage calculator. A home mortgage calculator will tell you what your monthly note will look like so that you won t overextend yourself.

Interest Only

Sometimes you may be able to find an interest only mortgage loan where you just pay the interest. The interest is usually what gets people in trouble so this can still be a recipe for disaster. If you have an interest only loan, you should still use an interest only mortgage calculator so that you can ensure that you can afford the house you re about to buy. Not overextending yourself is key no matter what type of loan you get.

The Fine Print

You must read the fine print on any mortgage loan. You can follow the home mortgage loan calculator and you can see if you can afford the home but sometimes the fine print includes stipulations where the interest rate or the monthly payment will jump in price after a few years. Many home loans are designed that way to entice new and young buyers. They get a low rate at first, and this excites the new crowd who never would have thought that they could afford a new home, but then the rate jumps after a few months or even a year to a much higher monthly payment. This often surprises home owners who haven t read the fine print and only followed their home mortgage calculators and that s why many homeowners are now finding themselves facing foreclosure. Don t be that person. Read the fine print so that you know you can afford the monthly payment throughout the entire span of your loan term.

Buying a house and getting a mortgage can be a very exciting time. It can also be very stressful. What happens if you can t afford your mortgage somewhere down the line? Will you lose your house? What if your mortgage comes out to be too expensive for you with all the fees and taxes added on? Can your mortgage loan officer just tell you what your monthly payment is going to be? Well, the truth is that you should actually plan for these things and you should know what your limits are before you even begin to work with a loan officer. You can do this by using a mortgage loan calculator. A mortgage loan calculator can be found online at some mortgage lender sites and you can even find one most likely at your bank. You merely plug in the numbers and it gives you what you re looking for; the total monthly payment. That way, you ll be able to see whether or not you can afford the home before you buy it.

Online

The great thing about using home mortgage calculators online is that there s no obligation to buy anything or even to sign up. You can see whether or not that lender is more fair than another lender merely by using their mortgage loan calculator online. You will need to know what your interest rate is going to be, however, and that will most likely change from lender to lender depending on your credit history. If you know what your credit score is, however, you can usually pin point what your interest rate will be and then you can get an accurate reading from your mortgage loan calculator.

The Numbers

You will need a few numbers in order to get an accurate reading from the mortgage loan calculator. You ll need to know the price of the house, any closing costs, the taxes, your interest rate, things like your income and credit score and anything else that may be pertinent to give you an accurate monthly mortgage amount. When you re finished, you ll know exactly how much you ll need in order to pay off your house with monthly installments.

Read The Fine Print

Be wary of any fine print. You need to make sure that whatever reading you get from the mortgage loan calculator you read the fine print. Make sure your payment isn t going to jump in a few months or even a year from now. That s why many people are facing foreclosure today; because their payments almost or more than doubled and now they re finding they can t afford the houses they live in.