Taking out a mortgage can be scary business, especially in a time when foreclosures are rampant. The key to successful home ownership in a tough economic time is knowing how much you can afford and staying in a reasonable limit. Many people do this by using various mortgage calculators, but not all are the same. So how do you know which mortgage calculator is best for your stage in the home buying process?
Mortgage loan comparison– allows you to compare and contrast the current interest rates and closing costs to determine how your loan amount will be affected. This is a good calculator to use before going to lenders to shop for a loan. Doing these calculations before seeking a loan can help you avoid unnecessary credit checks or wasting time with bad loan offers.
Mortgage affordability–allows you to calculate the exact loan amount you need to be able to afford your mortgage without going over budget. This calculator gives you an estimate of how much you can spend on a home. Use this calculator before you go house hunting to prevent you from looking at houses you can’t afford.
Mortgage amortization–allows you to know how long it will take you to pay off your mortgage loan and own your home outright, based on how much you pay each month. This calculator will show you the loan terms according to your monthly payment. Even if you obtain a 30 year loan, this calculator can tell you how fast you can pay off your loan if paying extra on your mortgage. This is a good calculator to use once you have purchased a home.