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

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.

Understanding Interest Rates

Even the most effective tool out there won’t do much good if you don’t know how to use it. For example, when properly used, a mortgage interest rate calculator can give you a lot of financial insight.

How to Pick an Offer Price on a Property You Want

It’s a crucial moment in every home sale- the moment where you make an offer on a property. Your offer isn’t quite iron clad until the seller accepts the offer, but it is a good faith statement of what you’re looking to pay for a property.

The Truth About Refinancing – When to Take the Plunge

If it were free to refinance then everyone could simply do it once a year and be sure they were always getting the best deal. However, there are fees involved – which could be significant – and it's also quite a time consuming process.

You Need a Full Feature Mortgage Interest Calculator

  How many variables did you take into consideration when you figured out what sort of mortgage you wanted to take on? Did you use a mortgage interest calculator that gave you a full 360-degree picture of every cost and expense related to your upcoming home loan?   If you didn’t use one of these calculators then you probably didn’t get the loan that best served your financial situation.   What Should a Mortgage Interest Calculator Feature?   At the very least one of these calculators needs to factor interest rates into the equation and help you determine how different rates will impact the short and long term payments you make.
Categories: Home Mortgage CalculatorRefinancing a Home MortgageUseful Tips and ArticlesConsumer & Industry NewsMortgage 411