Why You Should Not Use Online Mortgage Calculators
Making the correct choice when it comes to your mortgage is an absolute must. It’s impossible to be too careful, and you always need to double and even triple check the mortgage calculations being presented to you when you are making the decision to buy a home.
If you want to be assured of making one of the biggest mistakes in your life when buying your home, be sure not to use online mortgage calculators.
You see, there are many unscrupulous mortgage professionals out there who would love nothing more than to hand you a stack of papers and watch you sign them in blind faith that they have your best interests at heart. They would not want you to use any of the available online mortgage calculators available today. In fact, they’d rather you not even know that things like BankRate calculators, refinance calculators, or mortgage payoff calculators even exist.
Now That You Know What Not to Do, Here’s What You Need to Do
In order to get the most out of using an online mortgage calculator, it’s important that you understand how to use them.
Well designed mortgage calculators typically have four key fields. The first field asks you in input the value of your intended home – or its price. Put the full list price in, as you’ll likely be asked to input any down payment later.
Next, you’ll be asked to enter in the percentage down you intend to pay. This is also referred to as the down payment percentage field. Normally, you will have to pay between 15% and 20% down on your home loan, but some mortgage lenders have access to programs that allow you to put as little as 3.5% down, or maybe even nothing at all.
The third field you will be entering your figures into is the duration or length of your mortgage. Typically, you’ll have a 30 year mortgage – or 360 months. After that, you’ll enter in the interest rate you intend (or hope) to receive from your mortgage lender.
Taking the time to fill out your online mortgage calculator the right way means that you will be able to stay a step ahead of anyone who might want you to make a less than informed home loan decision. By gaining access to the detailed information delivered to you via a quality mortgage calculator, you’ll be in the driver’s seat.
Keep in mind that a well designed mortgage calculator takes into account every aspect of your home loan, so you should see three basic calculation results.
1. Gross Monthly Payment: Calculated from the price of your home, down payment percentage, interest rate, and mortgage length.
2. Factors Related to Private Mortgage Insurance: The mortgage calculator will determine whether your down payment is lower than 20%, and will add PMI accordingly to the monthly payment.
3. Residential or Property Taxes: The mortgage calculator will then add the amount of residential tax and present you with the third and final mortgage payment calculation result.