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Thursday, January 15, 2009

Mortgage Calculators: useful for finding the right home

So, you have finally made up your mind to desert your old residence and move to a new home very soon in this new year….I guess you are seriously planning to buy your dream house. Please hold on buddy…I have great news for you. Home prices, according to the last news update came on this, are already at or rapidly nearing the lows which in fact are the all-time low records till date. And indeed that makes this the best home buyer's markets in decades. In fact, in many parts of the country, it's like a buyer's bonanza.
Using one or more mortgage calculators is a great way to start with buying a home in such a tempting buying market. If you have ever set your mind for buying a home, or purchasing much more expensive home, this is the time. You will get up to 50% more home which come within your affordability in many areas of the country than you would get just a few years back. And with the help and support of a good mortgage calculator, you know your buying capability based on your financial set up, and can find out the appropriate price range that suits your pocket. You can even shop in your correct price range.
Today's mortgage environment is less rigid and a lot of choices are available. Therefore, you may need help finding out how much house you can afford, how much monthly payment fits your budget, how much down payment you might need, etc. And one of the easiest and proper solutions to all these necessities is the trusted online mortgage calculators.

Many online portals offer different versions and updated forms of the mortgage calculators; you can choose any calculator or set of calculators based on your purpose. There are, however, a few basic mortgage calculators that most mortgage websites contain. Here are three of the most commonly used tools:

‘Monthly Payment’ type Mortgage Calculator
It is a very simple kind of mortgage calculator….the calculation process is rather easy. A person needs to enter his/her mortgage amount after subtracting any down payment and the monthly interest and it will calculate his monthly payable mortgage amount. However, some versions of this utility may ask you to account for taxes of property and home owner's insurance. If the amount does not include taxes and insurance, you have to find out how much those expenses are; then you need to add those.

‘Home Affordability’ type Mortgage Calculator

Indeed this is one of the easiest mortgage payment affordability calculating utility. It is also the most accurate way to find out your affordable home in today's market. This calculator considers your monthly income, your unpaid debt load, your expenses (monthly bills, child raising expenses, taxes, etc), and your down payment; after this financial estimation, according to your capability it provides you a range of home prices you are able to afford. The more accurate information regarding your financial scenario and your affordability you put in, the better, authentic and dependable calculated output you will get. So it is strongly recommended that you include all debts and expenses.

‘Rent vs. Buy’ type Mortgage Calculator
This kind of mortgage calculator is very useful for those who are planning to purchase home for the first time. There is an option for you to carry out a side-by-side financial comparison of the usefulness of renting versus buying a home at present…you can find out which one of these 2 options is more acceptable to you at present financial condition. This calculator simply finds out your affordability for monthly mortgage payment, the amount you are currently paying in rent, your down payment, your projected mortgage rate and term (the number of years of mortgage) and then it gives you a mortgage vs. rent comparison. It points out the benefits of ownership over renting a house.


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