We can find you any home: a single family home, starter home
an exceptional home, luxury estates, or historic properties -
outside the scope of the typical home.
Most people make it easy for mortgage brokers to steer them into
deals that are more beneficial to the broker than the buyer – HOW?
Potential buyers lacking any grasp of how these loans actually
work are overwhelmed with the process and terms. Points,
principal, interest rates, interest only loans, FRM etc.. can be
confusing.
Why not be prepared by using a good online mortgage calculator
before meeting with brokers or banks? There are many on the
internet and most are very easy to use. Knowing your personal
financial situation, and some basic mortgage calculations can
level the playing field and very possibly save you lots of money.
HOW ? It’s easy!
Online Mortgage Calculator –The Basics
Monthly Payment - Perhaps the most simple function of a good
online mortgage calculator is finding out your monthly payment.
All you need is:
- the amount you want to borrow
- the interest rate of the loan
- the length of the loan - usually in years or months
You’ll simply enter these numbers into the form and submit…the
online mortgage calculator will return the amount you will pay
monthly based on the criteria you entered.
For example : You want to borrow 200,000 at 6% for 30 years –
your monthly payment will be: 1,199.00 per month.
Analyze the Scenario
A good online mortgage calculator will not stop there…
It should return a few other critical numbers :
Total Amount the Borrower Will Pay
In our case above the total amount paid – interest and
principal - by the borrower at the end of 30 years will be
$431,640. Total Interest the Borrower Will Pay
In our case above the total amount of interest the borrower at
the end of 30 years will be $231,640 about 53% of the total amount
spent is on interest.
Just think how a slight alteration in interest rate can have
tremendous impact on the total amount paid by our borrower!
The above situation with an interest rate of 7.5% results in
the total amount paid to drastically increase – total payment now
is $503,280, with $303,280 going to interest only. The monthly
payment would be around $1398.
Online Mortgage Calculators – Summary
Our simple example shows you how a 1.5% jump in interest rate
can cost the buyer over 70 thousand dollars over the life of the
loan. Obviously you want the lowest rate when locking into a home
loan and the online mortgage calculator arms you with critical
knowledge prior to that initial meeting with loan officers or
mortgage brokers.
Find out how much home you can afford by using these easy
online mortgage calculators. (link)It’s easier to get a better
deal on a home loan when you you’ve done a little homework. Leslie
Collins, mortgage specialist has been helping folks understand the
complexities of securing the best home loan possible.
Brenda & Leon "Clyent sold our home fast! He took high quality
digital pictures and a fabulous virtual tour to attract a buyer in about three days.
