How to Use Our Mortgage Calculator
Buying a property is exciting, but getting your finances in order to make the final purchase decision can be daunting. Our free mortgage calculator helps you to estimate your monthly installments based on the interest rate and the down payment you’re able to make. You can adjust the figures easily to get a clear picture of your future liability.
You don’t need any specialist real estate knowledge to use our calculator. More advanced calculators usually calculate all-in payments which include insurance, property taxes, registration fees, and even renovation costs. However, to quickly apply for a loan, all you need to know are the price of the property, your principal amount and the interest rates on a mortgage.
Basic loan terminology explained
A lot of us are not familiar with basic loan-related terminology. Here is what you need to know to use our free mortgage calculator:
Down payment: Your down payment is the amount of money you can initially spend on your property. This is the difference between the actual price of the property and the mortgage amount you seek.
Loan period: This is the duration or the tenure of your mortgage. It refers to the number of years within which you plan to repay the loan.
Interest rate: The interest rate is usually calculated annually, and is the amount you need to pay to the lending institution for having received a loan.
****Please note that there may be other fees associated with processing your loan, and this will be communicated to you before you agree to the loan being sanctioned.
How to use our free mortgage calculator in 3 easy steps
- Adjust your down payment, loan period and the price of the property to get your monthly estimated payment.
- If you think you can comfortably make the reflected payment every month, enter other details on the screen. Your occupation, zip code, the number of properties you own in the US, and your yearly income will help the lending institution to make an informed decision regarding your request and repayment capacity.
- When you are ready, click on “Apply Now”.
***Note: If you don’t want to apply for a loan right now, you can simply use our tool to calculate your estimated monthly payments to be made for any dream property.
There will usually be additional costs
- Please be aware of the limits set by the Federal Housing Finance Agency (FHFA) on conventional loans
- You will need to factor in property taxes, homeowner’s association (HOA) fees, and private mortgage insurance (PMI)
- Consider one-time expenses related to repairs or renovations that you may need to make when you purchase the property
- There may be recurring costs associated with home ownership such as utilities, maintenance costs, etc.
- Keep in mind that inflation, changes in the property’s value, etc. can all affect your recurring expenses
Planning to refinance an existing mortgage?
Our free mortgage calculator helps you to apply for a loan refinance too. Many people choose to refinance their loans because of certain advantages. These include lower interest rates, cashing out part of the home equity, or even reduce the monthly payment by agreeing to increase the loan tenure.
If you are looking at consolidating your debt by refinancing your home loan, all you need to do is to click on the “I want a Refinance Cash-Out” tab. Enter all the details, and click on “Apply Now”.
Now is always the best time to invest in real estate
Purchasing a property is a huge commitment, and requires a lot of thought. However, it does not have to be stressful, and it is one of the best investment choices one can make. Make an informed decision based on the down payment you are able to make, and a realistic estimate of how much you will need to pay per month as your installments.
Our calculator is effortless to use, and eliminates a lot of jargon associated with real estate and financing options. Once you’re ready, apply for a mortgage quickly and easily.