Getting pre-qualified for a mortgage is an essential step of buying a home. By using our mortgage calculator, you can learn the real cost of a home. From there, you can shop the housing market for a home that you love and can afford.
Using a Mortgage Calculator
Our mortgage calculator will help you with figuring interest costs. Depending on the average interest rates when you are looking to get pre-approved, they can have a significant impact on the interest aspect of your mortgage payment.
You will need to establish the cost of the home as well as your down payment. If you don’t wish to deal with PMI, you will need to put down 20 percent of the home cost in most instances.
From there, you can decide on a mortgage term, which is commonly 15 or 30 years. Once you then use the annual interest rate, your monthly payment will then be established.
Affording Your Home
After you are done figuring interest costs, you have to look at the other expenses you will have as a homeowner. This will depend on where your home is and what is unique about your situation:
- PMI
- Homeowners insurance
- HOA dues
- Escrow for property taxes
You will also want to look at your debt to income ratio to determine if the monthly payment will be affordable in comparison to your overall budget. The actual cost of a home has to be identified so you don’t get into a compromising situation where you can’t afford your home. Click here to use the The Tuttle Group’s Affordability Calculator
Once you know the monthly payment based on the cost of the home, the down payment, and the mortgage term, you can then factor in everything else you will have to pay as a homeowner. By taking the time to get your finances in order, it will make it easier to get your pre-approval for a mortgage.
The Tuttle Group offers a selection of home mortgage calculators that will help you determine what you can qualify for, and afford.
