Mortgage calculator allows you to estimate your monthly house payments. All you have to do is include a few necessary variables, including your taxes, insurance, private mortgage insurance, principal, and interest.
It allows you to see how your monthly payments will change as you update your home price, interest rate, down payment, and term of loan.
Why Use a Mortgage Calculator?
How much can I afford to pay for my house?
This is one of the main questions that people ask us and is one of the main reasons we suggest people use mortgage calculators. A monthly mortgage payment is likely to be one of the biggest costs of living.
There are a number of reasons why you should use a mortgage calculator to calculate your payment, as it can help you to gain a bit of foresight into how you might be able to afford your home in different scenarios. It can also help let you know if you need to refinance your home as well.
Beyond the things listed above, here is another batch of reasons as to why a mortgage calculator might be useful to you:
- Should You Go With an Adjustable Rate Mortgage: Adustable Rate Mortgages (ARM) start you off with what is called a “teaser rate”. Essentially, you get an interest rate that might work really well when you begin paying, though it has the potential to increase or decrease over time. If you only plan on being in your home for a few years, you might consider a 5/1 ARM. All in all, it is important to be aware of how much your monthly mortgage payment will be when the “teaser rate” expires.
- What Is A Good Length Of Term: If you are looking for a lower monthly payment, you might want to go with a 30-year fixed mortgage, though you will end up paying more interest on it over the course of the loan’s life. On the other hand, you can reduce your total interest with a 15-year fixed mortgage, though your monthly payment will be higher.
- Costs Of Living: A mortgage calculator can help to provide you with a reality check. You want to know how much you can expect to pay every month considering your taxes, insurance, etc.
- How Much Money To Put Down: It’s easy to put a very small amount of money down, as minimum down payments are typically as low as 3%. You may want to put more down if you consider your interest rate over the years. A mortgage calculator can help with this decision.
Buying Your Dream Home
Our aim as one the best mortgage broker Denver CO is to make the mortgage process as simple as ever.
We want our first-time homebuyers to know what to expect when going through the process, as we believe it is important to educate our clients so that they can become creditworthy borrowers.
If you’re looking for a top-notch mortgage lender to help you through the process, make sure to get in contact with us to get your free consultation!