Have you been looking into owning your own land or home lately, but you are unsure of the loan costs? Fear no more! A mortgage loan calculator helps to estimate what your potential monthly mortgage rate would be.
We frequently get asked exactly how to use the loan calculator, so let’s walk through it!
Loan Calculator Steps
- Enter the total amount of the loan.
- Add your estimated down payment.
- Interest rate of your loan.
- Ask about the amortization period and how many years this will be.
- Type in your payment period (This should always be set to monthly).
- Calculate! Don’t worry, we do the math for you.
It is that simple! The loan calculator helps you figure out how much home you can afford.
It is important to keep in mind that this will not be your total payment and does not include payment and interest. Other additional costs that may pop up:
- Property Tax
- Homeowner’s Insurance
- Homeowner Association Dues
- Private Mortgage Insurance
Using the mortgage loan calculator will only help to figure out what you can and can’t afford. Make sure you consider not only the costs mentioned above, but ALL financial debts and obligations you have. Based on this information, are you ready to buy a home?
When you are ready for that new home or ready to refinance your mortgage, call or stop by Mid America Mortgage for helpful guidance and advice!