The Benefits of Using a Home Buying Calculator
During the home buying process, you may wonder how much house you can afford. This is a reasonable question and concern, as it may be difficult to calculate a monthly mortgage payment without the help of an expert. Our home buying calculator can be of use during this step of the process. There are also many other additional benefits of using a mortgage payment calculator.
Determine how much house you can afford
Using a home buying calculator allows you to input the purchase price, down payment, loan term, interest rate, property taxes and home insurance. The calculator will then generate your monthly mortgage payment, breaking it down by principal and interest, home insurance and property taxes.
After reviewing the estimated monthly payments based on a specific purchase price, you will have a better understanding of whether the desired property is within your budget and price range.
Maintain a budget
Using a home buying calculator is a great budgeting tool. The calculator will help factor your estimated monthly mortgage payment into your existing budget. From there, you may adjust other factors of your budget accordingly to make sure you can manage all of your financial responsibilities.
Evaluate multiple mortgage options
Our home buying calculator allows you to calculate multiple options. By adjusting the purchase price, down payment, the term of the loan, and/or the interest rate, you will be able to familiarize yourself with different mortgage options to understand which loan will best fit within your financial parameters.
How to Use a Home Buying Calculator
Our home buying calculator consists of 6 factors:
The amount you expect to pay for the property
Cash you pay upfront for your home
Number of years required to pay off the mortgage
-Interest rate (per year)
The percentage of interest that you will pay on your mortgage
Taxes associated with the property
Property insurance that covers losses and damages to the property