| "You've been approved!" The words you have always | | | | - Down payment |
| wanted to hear when you filled out the home loan | | | | - Insurance (percentage of loan) |
| application. It swirls through your mind the opportunities | | | | - Start date of the loan |
| and memories you will cherish in your new home. | | | | Sites like and provide free online calculators. Save |
| Before you even start shopping for a home it is best | | | | yourself time and frustration trying to determine the |
| to understand in real terms what you can afford. Your | | | | monthly payment when these programs offered free |
| income level may make it tight for you every month to | | | | work well. Some of the calculators can also factor in |
| make the mortgage payment if you purchase too | | | | extra payments to your schedule and will show the |
| much home. | | | | end result savings. An amortization schedule is also |
| You may wish to know how much the home may | | | | provided to show you how your payments over the |
| cost you before you sign your contract. So you will | | | | thirty years reduce your liability and increase your |
| need to be a financial calculator to figure out the | | | | equity in the property. |
| monthly paper in real-terms. There is an easier way. | | | | Most mortgage lenders will give you a maximum you |
| The Internet has become the best place for | | | | can afford and should be within a few dollars of the |
| mathematical equations and there are some great | | | | actual dollar amount should you ask them for the |
| websites that will do the figures for you should you | | | | monthly payment calculated. Your being comfortable |
| know the absolute basics of the transaction. Here are | | | | with the mortgage payment will help you recognize |
| some of the factors that can help you determine what | | | | your monthly commitment to the property. There is a |
| your monthly interest rate will be: | | | | lot more involved than just making the payment to the |
| - Amount of home | | | | mortgage, utilities, upgrades and other expenses come |
| - Percentage of interest | | | | into play when factoring in all your overall commitment. |
| - Duration of loan (5, 15 or 30 years) | | | | |