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 Now the Time to Refi? Check Out a Refinance Mortgage Calculator

Now may be the perfect time for you to refinance your home – or it might benefit you to wait a few years. While the current market will have an impact on the right time to refinance, there are also many other factors that have to do with your own situation.

Use a Refinance Mortgage Calculator To Determine Which Route Is Best

Refinancing your home loan may not be the most feasible option for your situation. This is because rates may not be at the right level to make this option affordable for you.

How Much Interest Will You Pay Over the Course of Your Loan?

For those who aren't savvy in the financial and real estate industries, it can be tricky to figure out what a good interest rate is. Sure, the lower the better – but how much is too much? The first thing to consider is not just what your interest rate is but how much interest you'll pay over the course of your loan.

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.

Is the Fed About to Switch Up Mortgage Interest Rates?

  If you’re looking to take on a new mortgage or if you’re considering either renegotiating the terms of your existing mortgage or refinancing the loan altogether, then you need to pay attention to the news in the coming weeks as the Feds may be making some big buys in response to recent news regarding the relative yields on big-name mortgage securities.   Bloomsberg Businessweek reports that the relative measures attached to Fannie Mae and Freddie Mac’s home loans dropped to lowest they’ve been in five years.
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