Mortgage rates, property values, and economics change all the time. An affordability calculator is an invaluable tool for mortgage lenders and homeowners (or would-be homeowners). There are several types of loans, refinancing options, and other lending options available. Home prices are on the rise — and that means that rates are changing. Making sense of it all can seem impossible, but this useful tool can make things a whole lot clearer.
Using an Affordability Calculator
When you’re looking to buy your first home, an affordability calculator is priceless. Use this tool to figure out your various mortgage options and the mortgage rates you can afford. A simple mortgage calculator can give you an idea of what home ownership will cost you and how much house you can afford to buy. You can use these calculators to determine an approximate down payment and your potential monthly payment.
What You Should Know About Home Loans
Without a loan, most people would never be able to own a home. Around 65% of homeowners have a mortgage. Meanwhile, home prices keep rising. Estimates anticipate that home prices are going to rise between 2% and 6% just over the next few years. If you’re ready to buy your first home, now is the time to do it. Property values are going up, so it’s a good time to think about your credit score and start working on an affordability calculator to find out how much home you can afford to buy.
You have a lot of mortgage options available to you. Start exploring them by working with an independent mortgage broker or other types of mortgage lenders. You don’t need a perfect credit score in order to get a home, either. The average FICO score nationwide was 699 in April 2016. Although nearly 20.4% of Americans had a credit score that ranges from 800 to 850 as of April 2016 — a score that’s considered super-prime — the majority of Americans have lower (and better) credit scores that can allow them to secure home loans.
Use an affordability calculator to determine what kind of mortgage rates you can expect to get, to get an idea of your potential monthly payments and to get a better idea of what your home finances might be like. You’ll likely want to work with a mortgage broker, too. You might be surprised by how much you can actually afford and how easy it is to get a mortgage to buy your first home. For more information, please contact us today.
