Struggling to estimate your monthly mortgage payments?
This is where mortgage calculators come in handy.
In our opinion, mortgage calculators are some of the best tools around for new homebuyers, as they help property by spitting out information regarding monthly payments after simple variables have been inserted.
Some of these variables include taxes, insurance, principal, private mortgage insurance, interest, and more.
You can look at your monthly payments with a mortgage calculator and gauge how they will change as your interest rate, home price, down payment, and loan term continues to change.
Mortgage Calculator Benefits
Do you have any idea how much you can afford monthly to pay for your home?
Unpreparedness is one of the main issues that we hear about from our clients at Commerce City Mortgage Brokers. Out of all of the living costs that you incur, your monthly mortgage payment will likely be the largest. You should know exactly how much you must save each month to be prepared.
Your monthly mortgage payments can be calculated with mortgage calculators. There are several reasons why having those calculations is beneficial. For starters, a mortgage calculator can give you insight into how you might be able to afford your home in various scenarios.
If you are trying to refinance your home, for example, a mortgage calculator can provide you with the information to get started.
Let’s take a look at few more reasons why you might want to use a mortgage calculator.
- Finding the Ideal Term Length: Picking the length of your term is one of the most important decisions you’ll make in the mortgage process. A 30-year fixed mortgage might be your best option, especially if you are looking to reduce your monthly payments. You will end up paying greater interest throughout the loan’s life in the end, though. On the other hand, a 15-year fixed mortgage can reduce the total interest that you will see throughout a loan, though it will also cost you more monthly.
- Is An Adjustable-Rate Mortgage Right For You?: Adjustable-Rate Mortgages (ARMs) utilize what we call “teaser rates.” A teaser rate is an interest rate that has the potential to increase or decrease over time. A 5/1 ARM might be a solid option for you, especially if you don’t plan on staying in that home for long. Understanding what your monthly mortgage payment might look like once your teaser rate expires is wildly beneficial.
- Putting Down The RIght Amount: In a typical situation, a down payment will likely have a 3% minimum. Most people can afford to put down 3%. However, if you want to reduce your interest rate over the years, a bigger down payment might be a better choice. To find out how much you should put down, we recommend using a mortgage calculator.
Acquiring Your Dream Home
Here at Commerce City Mortgage Brokers, our main goal is to create a mortgage process that is straightforward.
As a first-time homebuyer, you shouldn’t feel lost in the mortgage process. Instead, you should have a clear idea of what you can expect when navigating through the mortgage process.
If you are ready to get started, make sure to contact us here at Commerce City Mortgage Brokers.