Sharing is caring!
Are you thinking of buying a home? Do you want to apply for a home loan program to get financial aid? You have chosen the right path. Home loan programs are the ultimate saviors for the homebuyers who want to have their own homes but don’t have the financial strength to realize it.
However, do you know how much home you can afford? Are you saying no? This is where the importance of an online mortgage calculator comes. With a mortgage calculator Houston, you can know your home affordability. Besides, it can be used for other purposes too. Here are the ones –
Want to pay off your mortgage early
By the time, you will pay off a 30-year fixed-rate mortgage; you will have made total interest payments that are significantly higher than the original principal on the loan. Use the “Extra payments” functionality of an online mortgage calculator to find out how you can shorten your term, as well as net big savings by paying extra money. And you can make the payment toward the principal of your home loan each month, every year, or even just one time. In order to get an idea of how much you can save, enter an imaginary amount into one of the payment categories – monthly. Yearly or one-time- and then follow the instructions offered by the online mortgage calculator to know how much interest you will end up paying and your new payoff date.
Decide if an ARM is right for you
The lower initial interest rate of an adjustable-rate mortgage, or ARM, can tempt you a lot. However, before you opt for it, you need to decide whether it will be the appropriate choice for you. It is because while an ARM is an ideal choice for some homebuyers, others find that the lower interest rate will not cut their monthly payments as much as they think. In order to have an idea f how much you can save initially, enter an ARM interest rate into the online mortgage calculator and leave the term as 30 years. After that, compare those payments to the payments you get when you enter the rate for a conventional 30-year fixed mortgage. Doing this may confirm your initial hopes about the benefits of an ARM – or provide you a reality check whether the potential plusses of an ARM really outweigh the risks.
Know when to get rid of PMI
You can also use an online mortgage calculator to decide whether you will have 20 percent equity in your home. This percentage is considered to be a magic number for requesting that a lender wave private mortgage insurance (PMI) requirement. All that you need to do is to enter the original amount of your mortgage, as well as the date you closed, and then follow the instructions offered by the online tool. And then, multiply your original mortgage amount by 0.8 and the result to the closest number on the far-right column of the amortization table to know when you will reach 20 percent equity.
So, now, go online and use various mortgage calculators to know home affordability, what will happen if you pay your mortgage early, decide if an ARM is a perfect choice for you, and understand when to get rid of PMI. What to wait for? Check now!