A mortgage calculator, also known as a mortgage payment calculator is a financial tool used to determine what your estimated mortgage payment will be and is based on certain variables such as home value, loan amount, interest rate and more.
Understanding your mortgage payment before committing to a home loan is a serious step in the financial responsibility of homeownership.
a Home Loan Calculator can help professionals and consumers understand how much they can afford.
How Much Can You Afford?
This is the most important questions when shopping for a new mortgage or comparing refinancing rates. The mortgage payment is just in one factor in the total cost of home ownership and this is the very reason why debt to income ratios are used by lenders.
Typically you want to stay under 35% of your total monthly income for your mortgage obligation however this 35% also include property taxes, homeowners insurance and condo or association fees.
Before comparing mortgage payments it’s a good idea to make a sidenote of how much these additional homeowner costs are and add them to the mortgage payment calculated online for a true sense of the full obligation as a homeowner.
Can Anyone Buy A Home?
A few years ago the answer seemed to be yes however today mortgages are a little more difficult to get in America. Consumers with good credit, good income and a decent down payment often have no problem qualifying for a home loan however guidelines certainly are stricter now than before the economic downturn.