A mortgage calculator is a beautiful thing. Of course, you might think that we’re just being over the top. On the contrary, you future homeowner you — using a mortgage calculator might be the smartest thing that you’ve ever done, right up there with deciding to ditch those rent payments and invest in your family’s future. This is a tough decision that’s been made even tougher as credit markets freeze up and lenders start getting nervous. While this doesn’t mean that it’s impossible to get a mortgage, it does mean that your lender is looking at your application with a bit more scrutiny — and denying you on small things that might have been overlooked in the past.
This is where your mortgage calculator comes in, actually. Instead of worrying about whether or not you can really afford that mortgage payment, you’ll be able to find out in a flash.
Now, at this point you might think that there’s really no need to go with a calculator — after all, the bank has already preapproved you for a certain amount after a lengthy mortgage application.
Not so fast.
Just because you’ve been preapproved — that is, that the lender has told you how much house they will help you finance — doesn’t mean that you should go out and get that much house. That’s a good way to find yourself in foreclosure land before you’ve even gotten to enjoy the benefits of owning a home.
Using a mortgage calculator is pretty easy. You fill in the first field with the total amount that you are having financed. Now, this isn’t always the total amount of the home — after all, you should have a down payment, right? Right. You will need to enter in the down payment as well. Along with these two fields, you will need to make sure that you note the interest rate. If you don’t have it, you can always estimate.
Plugging in the numbers isn’t the hard part. It can be hard to realize that you really can’t afford the house that you ultimately wanted in the first place. It’s better to know that the numbers don’t work. After all, you have to calculate in maintenance — there’s no landlord to call when the pipes burst, or when you have to replace rotted wood. If that wasn’t enough, you have to think about taxes and insurance — on top of principal and interest! Yikes!
Overall, using a mortgage calculator is really what’s necessary if you want to make sure that you have not only enough money for a mortgage, but for the rest of your life as well — get started today!