Buying a Home: The Benefits of Using a Home Buying Calculator
During the home buying process, many often wonder, “How much house can I 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.
Benefits of Using a Home Buying 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:
- Purchase price
The amount you expect to pay for the property
- Down payment
Cash you pay upfront for your home
- Term (years)
Number of years required to pay off the mortgage
- Interest rate (per year)
The percentage of interest that you will pay on your mortgage
- Property tax
Taxes associated with the property
- Home insurance
Property insurance that covers losses and damages to the property
Having a better understanding of the often-asked question, “How much house can I afford,” will help you prepare for the home buying process. It is important to become acquainted with all the steps of buying a home. By learning all of the home buying process steps, you will help yourself become fully prepared to apply for a mortgage!