How Much of a Mortgage Can You Afford?
A mortgage calculator in
Thornhill can provide a reasonable approximation of the mortgage payments that
can be expected given the following information:
- Mortgage amount – simply enter an amount for the
mortgage. If you know the price of a
house you are interested in, enter that amount here. It is advised to enter an amount that you will
be able to repay comfortably.
- Mortgage amortization period –the length of the
mortgage term. Typical lengths are 20
years or 25 years, but most calculators will allow you to enter almost any
length of time from 1 year to 30 or more years for reference.
- Interest rate – enter the interest rate. Most calculators will default to an interest
rate, but you can enter any interest rate that is relevant to you.
- Payment frequency type – choose the frequency of
the payments. Common options include
monthly or bi-weekly payments, but most calculators will provide the choice of
a variety of payment options.
Simply make a change to one of
the variables and instantly see the effect it has on the payment amounts and
the interest paid. For instance, many
homeowners debate over whether to take a 20 year or 25 year amortization
period. A mortgage calculator provides
visual evidence of the lower payments possible with the longer period, but it
also shows the resultant cost in additional interest paid. The same holds true for other important
variables such as mortgage amount, interest rate and payment frequencies.
Are Mortgage Calculators Accurate?
Mortgage calculators are a type
of online tool that allows people to gain an understanding of how the different
mortgage terms affect important variables such as the mortgage payments and the
total interest paid over the life of the mortgage. They are especially useful for prospective
first time homebuyers, but they can also be very useful for existing
It is important to understand
that a mortgage calculator will only provide a reasonable approximation of what
payments to expect given the information that is entered. They are not an
accurate representation of the cost of ownership of a home, but they can be
useful when creating a budget.
Other Types of Calculators
There are new types of mortgage
calculators that have been specifically developed for people who have existing
Perhaps you have extra money to
put towards your regular mortgage payment amounts or you have a lump sum to put
down. A mortgage payoff calculator will
take the existing mortgage information entered and show just how much these
extra payments will affect the total amount paid for the mortgage and the interest
savings that are possible.
A mortgage refinancing
calculator is an excellent informational tool for people who are considering
refinancing their existing mortgage. With
interest rates at historically low levels, more people are refinancing older
mortgages to take advantage of the interest savings that are possible. A refinancing calculator will provide an
estimation of these savings.
When you are ready to go beyond
the preliminary information available from a mortgage calculator in Thornhill,
member and qualified mortgage lender
will be able to help you further realize your unique mortgage goals with a full
range of mortgage services including the following: