What is a Mortgage Calculator?
Do you have a need for a
mortgage calculator in Pickering? A
mortgage calculator can be a very valuable tool in the preliminary stages of
understanding mortgage amounts and corresponding payments. While most traditional mortgage calculators
will leave out many of the details of an actual mortgage, it will provide basic
information that is very useful in understanding how much of a mortgage you can
afford and an approximate mortgage payment to expect.
A basic, traditional mortgage
calculator will provide a rough estimation of where you stand financially and
what payment amounts to expect for approximate budgeting purposes. The estimations are basic because other personal
characteristics such as your credit score and your debt-to-income ratio play an
important part in the amount and interest rate you will qualify for.
Visualize Your Mortgage
Mortgage calculators are an
excellent tool for familiarizing yourself with important mortgage terms and
understanding how each factor affects the different elements of the mortgage. We all know that it is important to secure a
low mortgage rate, but most people are very surprised at how as little as half
of a percentage point can make in terms of the mortgage payments and total
interest paid. The information provided
by the mortgage calculator makes it easy to visualize the thousands of dollars
that can be saved by shopping around for the best rate.
The calculator also makes it
easy to see how the amortization period affects the mortgage payments and the
amount of interest paid over the course of the mortgage. People often gravitate towards longer
amortization periods because it will lower payments and make it possible to
afford a higher priced house, but seeing how it increases the amount of
interest paid can make people think twice.
It can also be interesting to
see how the payment frequency affects the payment amounts and the interest that
is paid. Most people understand that increasing the frequency of payments will
lower the overall interest paid, but it can be eye opening to see what effect accelerated
payments will have on the bottom line.
Different Types of Mortgage Calculators
Mortgage calculators are an
excellent way to compare mortgages. With
mortgage rates historically low, a mortgage calculator makes it easy to see
whether it makes financial sense to take advantage of lower rates to refinance
an existing mortgage. In many cases the
lower interest rates can save more than enough money to make it worth paying
any fees for refinancing the mortgage.
Some of the top lenders in
Canada who offer mortgage
provide specific mortgage calculators which will take your
existing mortgage information and show you exactly how much you can save by
refinancing at a lower rate. These
calculators may even take into account any closing costs and prepayment
penalties to provide a more complete picture.
A mortgage calculator in Pickering will only give rough
estimations of the figures you can expect. A qualified mortgage lender
, who is also a
member of the Canadian Association of Accredited
Mortgage Professionals (CAAMP), will be able to help you further realize
your unique mortgage goals with a wide range of mortgage options.