| A mortgage calculator is perhaps the most valuable | | | | the cost of payments. Monthly payment calculations |
| tool for anyone shopping for a new home. The reason | | | | are another benefit of using a mortgage calculator. |
| is because a mortgage calculator can provide a | | | | Based on the purchase price of a home, individuals can |
| variety of different figures, including monthly payments, | | | | enter the length of their desired loan and the estimated |
| affordability and interest costs. A mortgage calculator | | | | interest rate. In return, the mortgage calculator will |
| allows an individual to input his/her monthly income, | | | | provide estimated monthly payment amounts based |
| monthly debt payments and returns an estimated | | | | on the information provided. In addition, the total cost of |
| amount on how much he/she can borrow for a | | | | the home including interest can be figured, along with |
| mortgage loan. This number is only an estimate and | | | | various loan terms and amounts. |
| cannot be used as a guarantee, but it certainly gives a | | | | Without a mortgage calculator, many first time |
| prospective homeowner the knowledge to move | | | | homebuyers may go into the process without the |
| forward with plans for home ownership. | | | | proper knowledge or how much they can actually |
| Anyone who enjoys surfing the web can find a | | | | afford. In today's market, an individual's debt must not |
| mortgage calculator available at almost every lending | | | | exceed 50% of their total monthly income if they wish |
| website, especially those that offer multiple lender | | | | to get the best interest rates. If their debt to income |
| queries. Some good examples are Lending Tree and | | | | ratio is higher than 50%, the borrower may be labeled |
| eLoan, both of which offer a free mortgage calculator. | | | | as high risk and suffer higher interest rates or, in some |
| In addition, local banks and lending institutions may offer | | | | cases, may be denied a loan altogether. An example |
| a mortgage calculator via their website for added | | | | would be an individual who earns $4,000.00 per month |
| convenience. Most shoppers enjoy using this tool to | | | | and wishes to purchase a home with monthly |
| help better equip them for shopping for an affordable | | | | payments of $3,000.00. Because this number greatly |
| home. | | | | exceeds 50% of the borrower's take-home pay, he |
| The benefits to using a mortgage calculator are many | | | | she may be forced to find a home that is more |
| and will give a new homebuyer a realistic look at his | | | | affordable. The 50% debt to income ratio includes |
| her financial situation, how much they can afford, and | | | | mortgage, auto and credit card payments. |