| Once you have taken the decision to get a mortgage | | | | With a repayment mortgage you pay off part of your |
| you need tobe able to work out how much you can | | | | mortgageevery month but with an interest mortgage |
| afford to pay. | | | | only the interestis paid off each month. When you |
| You can do this by performing a mortgage payment | | | | consider what type suits youremember that an interest |
| calculation. | | | | only mortgage rate (alwayscalculate loan interest as |
| There are certain considerations when you calculate | | | | well) will be considerablysmaller. Although this will |
| mortgagepayment levels that suit you that you need | | | | appear attractive you will needto be able to pay of the |
| to keep in mind: | | | | rest of the loan at the end of yourloan payment |
| How much mortgage can I afford? What type of | | | | schedule. You can do this by investing money -but |
| mortgage should | | | | poor investments will lead to a shortfall and you |
| I get? What kind of loan payment schedule suits me | | | | willneed to take advice at how to invest money so |
| best? | | | | that it growswith your mortgage. |
| As always it is best to start at the beginning. How | | | | When you have settled on a mortgage that suits you |
| muchmortgage can I afford: answering this question is | | | | (you willfind a weekly mortgage calculator allows you |
| easy - butyou must be honest with yourself! Look at | | | | to break yourfinances down better than a monthly |
| your earnings andsavings and your expenses. How will | | | | breakdown) there areother still a few more things to |
| these be affected by amortgage? Some expenses | | | | consider. What are yourmortgage closing costs? |
| like rent will disappear when you area homeowner but | | | | These might make the final amountyou pay much |
| a mortgage will bring other expenses (you mayhave | | | | higher - especially if you pay your mortgageoffer |
| removal costs and you will almost certainly have | | | | quicker than the original loan payment schedule. |
| legalcosts). An online financial calculator will allow you | | | | Areyou able to claim any discounts like small business |
| workout exactly how much you can afford to commit | | | | taxdeductions? What are the bank loan rates (an |
| to in a mortgage. | | | | interest ratecalculation will help you here)? You might |
| Now you must decide what kind of mortgage is best | | | | also be affectedby mortgage loan origination - check |
| suited toyour needs. There are various types of | | | | your mortgage provideris dealing with your mortgage |
| mortgage but do not letthis put you off - the choice | | | | themselves and not farming itout as this may increase |
| makes it easier to find amortgage that suits you best. | | | | the amount you pay. It is alwaysbest to shop around |
| The two most common types of mortgages for | | | | and find the best deal! |
| homeowners | | | | When you calculate mortgage payment levels that suit |
| (commercial mortgage rates are applied to business | | | | youshould know what you can afford. After that it is |
| premises)are repayment mortgages and interest only | | | | easy tocalculate a payment that is tailor made to suit |
| mortgages. You canalso have a combination of the | | | | you best. |
| two. | | | | |