Home Mortgage Calculator - Tips for Getting Optimal Terms

The process of applying for home financing, being approved, and deciding if the financing terms work for your needs can be an overwhelming and confusing process. However, when you have a few simple facts in your pocket and a basic understanding of how it all works, then you'll find the process much easier and you'll feel more confident about the decisions you make.

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Do the Banks REALLY Hold All the Power in Mortgage Negotiations?

We’ve got some good news and some bad news for you:

  • The bad news is- interest rates in general depend on what the prime rate is, and also on your credit score.  This means you will have to operate within those paramaters.
  • The good news is- it barely takes any homework at all to walk into your mortgage negotiations understanding the process and feeling good about the outcome.

The Tool You Need to in Researching a Mortgage

An important tool you need is a home mortgage calculator. Using one of these calculators you will:

  • Figure out the exact minimum and maximum amounts you can afford to pay every month.
  • Learn how to reduce overall interest paid on your loan by choosing monthly payments greater than your minimum.
  • Learn how much more money you will save paying your loan off faster rather than directly investing that extra money.
  • Take responsibility for your financial life and decide for yourself what you want to pay on your loan.

Picking the Right Calculator

Make sure you use a home mortgage calculator with taxes built into it. Better yet, make sure that calculator also factors insurance payments into its formulations.

You can use a normal calculator to figure out the maximum amount of money you can afford to pay on your loan, only to learn too late (often at the negotiating table) that you can’t actually afford to pay that much every month because you didn’t take into account auxiliary costs, including taxes and insurance payments. Suddenly you realize your math is all wrong and you won’t be able to pay off your loan under as favorable terms as you hoped.

In this moment of confusion you may end up allowing the bank to steer you towards unfavorable mortgage terms. Take all expenses into account and know exactly what you are able afford every month.

Your Final Trump Card

Using this information you can walk into any mortgage negotiation with a level of confidence and assurance you never dreamed possible. But the greatest benefits of running the numbers yourself comes when you take the process one step further and begin to comparison shop among banks.

With your trusty home mortgage calculator in hand you will be able to figure out the exact amount of money you will pay over the life of every single loan offer you receive from every bank you petition. Which means you will know that even though Bank A’s terms sound better than Bank C’s, over the life of the loan Bank C’s mortgage will costs you tens of thousands of dollars less.

When it comes to gaining the loan you need to buy your house, a little bit of personal calculation goes a long, long way.  Let us help with our online home mortgage calculator with taxes.

Home Mortgage News and Articles

Is a Good Faith Estimate Actually Useful?

The federal government heavily regulates many aspects of the home loan process, and one of those aspects is a document known as a Good Faith Estimate. But what is a GFE and why is this short spreadsheet so important the Feds require lenders utilize them?   Receiving Your Good Faith Estimate Your prospective lender needs to give you a GFE within 3 days of receiving your loan application.

What's the Purpose of a Home Mortgage Calculator?

Many people who are just starting out in the home buying world aren't sure of the first step to take. Often they hear about a home mortgage calculator but don't know if it's the right choice for them or how it can really help.

How Much Can You Save By Paying More Than Your Mortgage's Minimum?

You've likely heard the advice that if you want to save big on your mortgage, paying more than your monthly minimum can have a huge impact. How does it all work? Surely you'll get it paid off sooner because you'll be paying off the balance faster than you've agreed to, but there can be a larger impact as well.

How to Get the Best Possible Terms on Your Home Loan

There are plenty of tips and tactics you can implement to get the best possible terms on your home loan, and that’s true whether you already have a loan or if you’re about to sign up for your first mortgage. If you already have a loan decide whether you want to refinance and replace your existing mortgage with a new lender, or stick with the same bank.

What Does the Decrease in Use of the Mortgage Break Mean?

There are many advantages to owning a home, and one of the major ones is the tax write-offs available to those who are paying interest on their home loan. However, an interesting trend has been discovered: In 2011 there was a drop in mortgage interest deductions.
Categories: Home Mortgage CalculatorRefinancing a Home MortgageUseful Tips and ArticlesConsumer & Industry NewsMortgage 411