Mortgage Calculators

What do you do with a mortgage calculator?

My mortgage calculators can help you with many things. You can estimate your monthly principal and interest mortgage payment, not including property taxes, homeowners insurance, mortgage insurance if needed, and any required HOA fees. There’s another mortgage calculator to analyze fixed rate mortgages versus adjustable rate mortgages. There is also a mortgage payoff calculator that can help you determine what it would take to make pre-payments to pay your loan off early, or determine how much you have left on your mortgage balance. There is a mortgage qualifying calculator that can give you an approximation on how much mortgage you might qualify for, although it’s better to go through a full preapproval process for the most accurate analysis. And last there is a rent versus buy calculator. You’ll find more notes on all of these calculators if you scroll to the bottom of this page.

How is each mortgage calculator used?

Carefully think through the data that you enter for each input. It’s important to realize that the numbers that result from each calculation are approximate and not guaranteed, and should be confirmed by speaking to a mortgage loan officer. You can try out different numbers and variables for different options. Always remember that any calculations done online are only to be used as an approximate guide, always talk to a mortgage loan officer to get the most detailed answers.

What is a mortgage?

A mortgage is an agreement between you and a lender that allows you to borrow money to purchase or refinance a home. However, if you do not make your payments at some point the lender would have the right to take your property through a foreclosure process. Always be careful to assess your financial situation to make sure you can meet your obligations. While a mortgage lender may approve you up to a certain mortgage amount, they do not take into account other financial goals and needs you may have, like desired savings and investment goals, childcare, travel plans, family financial obligations, utilities, and more.

Do I need a down payment to buy a home?

You typically need a down payment to buy a home, which is a percentage of the sales price. The required down payment varies depending on a lot of variables, such as loan size, property type and debt ratios. If you are a veteran you may be eligible for a $0 down payment VA loan. There are first time homebuyer Conventional loans that you may be able to do as low as a 3% down payment depending on the variables.

Does my down payment matter?

A down payment of 20% or more will get you a loan with no mortgage insurance. And a large down payment means a lower loan amount and a lower monthly payment. If you can’t put 20% down, a higher down payment would mean cheaper mortgage insurance. For example 10% down has a lower monthly mortgage insurance cost than 5% down, and 15% down has a lower monthly mortgage insurance cost than both 5% down and 10% down. And some scenarios require a 20% down payment or more, such as Jumbo loans, also called Non-Conforming loans. However, putting more money into your down payment means taking it out of an investment or bank account that may be earning interest or dividends, so there’s a cost for putting more money down. Some people would rather put a lower down payment down and stay more invested. That’s a discussion for a financial advisor, after getting pre-approved by mortgage loan officer.

What loan term should I do?

The term of a loan can vary. I have seen loan terms of 10 years, 15 years, 20 years, 25 years and 30 years. This is how long it will take to pay off the loan. The most common loan term is 30 years. Lower terms mean you would pay less interest, but your monthly payment would be higher. Mortgage term is another thing that is important to analyze carefully, possibly discuss with a financial advisor, and talk to your mortgage loan officer about when you get pre-approved for a mortgage.

What interest rate will I get?

The interest rate that you pay will vary according to numerous variables. Things that affect your interest rate quote are credit score, property type, loan size, debt ratios and more. The interest is the money that you will pay to the mortgage lender that you borrow the money from. If your loan is sold, the interest rate and other terms of the loan do not change.

Learn more about me before getting pre-approved, or start a no cost/no obligation pre-approval application.