A real estate loan calculator can give you a great approximation of the costs that you will initiate when you take on a piece of real estate. Use the organization that you obtain here to help with your overall budget. Here are the top five ways.
1. How much of a house can I afford?
By using a total home buying budget calculator, you can determine an approximation of the maximum that you can spend on a home. Using this calculator, you can find the number using your annual income, the term of the loan, the interest rate, the property tax rate, and the home insurance rate as a percentage of total cost.
It is recommended that you set the loan term, the interest rate, the property tax, and the home insurance first, because these are terms that are given to you by the bank. You can improve these terms by improving your credit report and your cash on hand, or by purchasing mortgage points. Once those are set, you can move on to the determination of the home you can afford by your annual income, the purchase price, or the monthly payment that you want.
2. What kind of income do I need to successfully apply for a mortgage?
The mortgage required income calculator helps you to determine the amount of income that you will need based upon the interest rate, the total mortgage amount, and the loan term that you are given. Once you set these terms, you can move down and set your monthly liabilities and monthly housing expenses.
The monthly liabilities approximate the rise in income that you will need in order to offset any of the other expenses that you have in the month. These expenses include auto and student loans, credit cards, child support, and any installment loans that you are responsible for.
This calculator also gives you room to place your monthly housing expenses such as property tax, insurance, homeowner’s association (HOA) dues, and private mortgage insurance. Keep in mind that these are only the lender and government requirbents. This calculator does not allow you to account for living expenses such as food, gas, and utility bills.
3. Is it time for me to buy, or should I keep renting?
The question of whether to buy or rent is an important one, but it can be difficult to determine. However, the rent versus buy calculator will tell you precisely when your home buying decision will break even for you considering an economic cost of renting over the same period.
You can set the purchase price, the interest rate, and the loan term of the house first. Below that is the property tax rate, the home insurance percentage, and any HOA fees that you are responsible for. You can also choose to report the amortization annually or monthly.
Because the breakdown of renting versus buying is affected a great deal by fixed closing costs and the size of the down payment, the calculator gives you a chance to place these values in a separate section. This section also includes a percentage for loan origination and the mortgage points that you may choose to pay up front. There is also a listing for the other closing costs that you may incur. The final term in this section lets you know how much of your cash on hand will actually be able to go towards the down payment, and the home purchase break even point changes according to your input factors as well.
Finally, you have a section to compare your rent payment to the buying input factors that you mentioned above. You have a place for a monthly rent payment that includes expected inflation, the after tax investment return percentage, income tax rate percentage, future sales commission percentage, and even a percentage that the home appreciates at. You can also see the point at which buying a house would not break even after 30 years using this calculator.
4. Should I use a fixed rate loan or an adjustable rate mortgage (ARM) loan?
The ARM versus fixed rate calculator can help you budget by a fixed rate versus two kinds of ARM loans: an interest only ARM or a fully amortizing ARM loan. The fixed rate mortgage allows you to input the mortgage amount, the loan term, the interest rate, and the amortization period. There are sections for the two ARM loan types with an initial interest rate input, the months that the rate may be fixed, the expected adjustment when the loan changes, and the cap on the interest rate. The graph below shows you how your payments will increase or decrease over a four year period.
5. How much should I offer as a down payment?
The down payment calculator helps you to determine how much of your cash on hand you should put down as a down payment. You can compare the interest rates, origination charges, and other settlbent services that your bank says that it will give you at certain levels of down payment in order to see your savings at different levels. You will easily be able to see if a higher down payment is worth it and where the diminishing returns stop.
2 Point Highlight
Because the breakdown of renting versus buying is affected a great deal by fixed closing costs and the size of the down payment, the calculator gives you a chance to place these values in a separate section.
The down payment calculator helps you to determine how much of your cash on hand you should put down as a down payment. You can compare the interest rates, origination charges, and other settlbent services that your bank says that it will give you at certain levels of down payment in order to see your savings at different levels.
