If you are looking to estimate your monthly house payments, there is no better tool to utilize than a mortgage calculator. Mortgage calculators work by inputting several variables to spit out information on monthly payments. These variables include taxes, insurance, principal, private mortgage insurance, interest, and more.
Mortgage calculators allow you to look at your monthly payments to see how they will change as you continue to update your interest rate, home price, down payment, and loan term.
Benefits Of Using A Mortgage Calculator
One of the main questions that mortgage calculators can answer is
How much can I afford to pay for my house?
This is one of the main questions that we receive at Aurora Mortgage Brokers. Out of all your living costs, your monthly mortgage payment will likely be the largest one.
There are several reasons why we would suggest using a mortgage calculator to calculate your monthly mortgage payments. They can help provide insight into how you might be able to afford your home given different scenarios. If you need to refinance your home, a mortgage calculator can provide you with the necessary information.
Here are a few additional reasons why a mortgage calculator might be beneficial to you:
- Knowing The Best Term Length: Term length is a very important mortgage decision. You might want to go with a 30-year fixed mortgage if you are looking to lower your monthly payments. With that said, you will end up paying greater interest over the course of the loan’s life. On the other hand, a 15-year fixed mortgage can reduce the total interest you will see over the course of a loan, though your monthly payments will be higher.
- Should You Choose an Adjustable-Rate Mortage: Adjustable-Rate Mortgages (ARMs) utilize a teaser rate at the beginning. This means that you receive an interest rate that could potentially be perfect for you when you start your payments, though that rate might increase or decrease as time goes on. You might consider a 5/1 ARM if you’ll only be staying in your home for a few years. Understanding your monthly mortgage payment once your teaser rate expires is extremely helpful
- How Much Should You Put Down: Putting a very small amount of money down is easy, as down payments typically have a minimum of 3%. However, to reduce your interest rate over the years, you might want to put more money down, to begin with. Mortgage calculators work well for this.
Buying The House Of Your Dreams
Our main priority here at Aurora Mortgage Brokers is creating a simple and streamlined mortgage process for our clients.
We want our first-time homebuyers out there to have a clear idea of what they can expect when navigating through the mortgage process. For our clients to become creditworthy borrowers, we need to educate them.
If you’ve been looking for a top-notch mortgage broker to work within the Aurora area, make sure to get in contact with us here at Aurora Mortgage Brokers.