| If you need to know anything about your monthly | | | | more than you thought so you can increase the loan |
| mortgage payment then you need to know how to | | | | amount or decrease the amount of years you want to |
| use a mortgage calculator. It is the best tool you will | | | | pay it over. |
| come across to figure out the best mortgage | | | | You definitely want to get a fixed rate mortgage in this |
| payment options for you. | | | | economy so I don't recommend changing the interest |
| You should start out by figuring out all of your monthly | | | | rate. However, you should lower the loan term to 15 or |
| bills and monthly income and weigh them against each | | | | 20 years if you can because you'll pay off the |
| other to see how much you can afford for a | | | | mortgage much faster and pay so much less in |
| mortgage payment. Once you have done that you | | | | interest. |
| should check the current interest rates so that you get | | | | Go back to the mortgage calculator and use the two |
| an accurate number. | | | | to three best scenarios you found with an amortization |
| Now you can go to any free mortgage calculator to | | | | schedule. This will show you how much principal you |
| see how much of a home you can get for the | | | | are paying each month which is the only thing that |
| monthly amount you can afford. Plug in the interest | | | | counts. Interest, points, taxes, insurance and condo |
| rate you found and a rough amount for a home in the | | | | fees are all just trash cans to throw your money in. |
| range you want to look. Then use 30 years for the | | | | The principal is what you end up with when you sell |
| term to start and see what you get. The calculator will | | | | the home so you want to make sure you have plenty |
| give you a monthly mortgage payment amount | | | | going toward the mortgage balance. |
| including principal and interest. | | | | A higher monthly payment is fine as long as the extra |
| These mortgage calculators are usually free so you | | | | money is going toward principal. If it's going toward |
| can keep using it and playing around with it until you | | | | interest it couldn't possibly be better. Even if you get |
| reach a number you're satisfied with. If the first number | | | | the 30 year mortgage you can still pay extra principal |
| you came up with was too low then you can afford | | | | each month so don't get discouraged. |