| There are a few things you should check before | | | | mortgage payment for 30 years then they have to |
| buying a home. They all involve using a mortgage | | | | adjust the amount of interest each month. So as the |
| calculator so I suggest you find a free one now. It's the | | | | interest lowers the principal increases because you |
| best tool to use when doing any calculations for a | | | | keep paying off more of the loan. The amortization |
| mortgage payment. | | | | schedule shows you how much principal you're paying |
| Debt To Income Ratio | | | | each month and how long it will be before you reach |
| Your debt to income ratio is very easy to figure out. | | | | certain marks. |
| The bank will approve you for about 40% of your | | | | Interest Rates |
| gross monthly income in this economy. So take your | | | | Always make sure you check the current interest |
| average gross in come over the last two years and | | | | rates because it makes a big difference on your |
| divide it into months. Less say you average income | | | | mortgage payment. Use a mortgage calculator to see |
| was $70,000 divided by 12 months equals about | | | | the amount you can save by lowering your interest |
| $5,800.00. The bank will allow you to use about 40% | | | | rate by 0.50%. So use 6% and then try it again on the |
| of that which is $2300.00. Then you have to subtract | | | | calculator with 5.50% to see how much you would |
| all of your monthly loans. Any car loan, mortgage loan, | | | | save. They're also negotiable because banks are in |
| student loans and insurance. All of the house | | | | competition too and want to get your business. So |
| expenses are factored in by the bank so you don't | | | | make them fight for it so that you get the lowest |
| have to include that. | | | | interest rate available. |
| Amortization Schedule | | | | Any interest calculator works the same so you can |
| Most interest calculators will have an amortization | | | | use anything that you find for free on the internet. |
| schedule attached to it so you can see the | | | | They will show you the amortization schedule and help |
| breakdown of your monthly mortgage payment. The | | | | you with your debt to income ratio as well. These are |
| more you owe the bank the more interest you have | | | | very important things to know and you'll find that out |
| to pay, and since they want you to have the same | | | | when you get to the bank. |