You can use this helpful mortgage payment calculator to see how various interest rates will affect your monthly payments.
The Mortgage Bankers Association reports that as of May, 2011, 12.31% of mortgage borrowers are delinquent at least one payment, and many are facing foreclosure. According to Fannie Mae (Federal National Mortgage Association) the increased number of defaults and repossessions along with a decline in the real estate market has resulted in home values dropping more than 30% since reaching their peak in 2006.
While this may not be good news if you are a homeowner, it does create a favorable market for the consumer. With more houses available at lower sale prices, it has never been a better time to purchase a home. But, although you may have found the place of your dreams, you want to make sure that you don’t become another statistic, joining those struggling to make a payment they can’t afford.
This budget tool will allow you to compare monthly payments with different interest rates, amortization periods or interest terms, and down payment amounts. You do not need a bank or lender to tell you what you can afford.
Play around with the numbers to determine what price range will fit your budget and what options will help you get the most for your money. A lower interest rate will not only make your payments more manageable, but it will put more money in your pocket and give you the freedom to pay your mortgage off faster, increasing the equity you have in your home.
You may even want to use the free household budget form to calculate your income-debt ratio and help you get a better idea of how much money a lender will likely approve for your financial situation.
How to Use the Calculator:
This calculator was very easy to use.
I would find myself using this tool when I am considering buying a home and wanting more information on payments with given interest rates and loan terms.
Posted by: Pam
Simply enter the house price, down payment amount, interest rate, and term length then click the “calculate now” button. The calculator will display your monthly payment. By clicking “clear and reset” you can enter new numbers to compare your options and see how much you could save with a lower interest rate.
Whether you are looking for a new mortgage or wanting to refinance an existing one, this mortgage payment calculator is a helpful tool that will show you which lender is offering the best deal and help you discover options to pay your mortgage down quickly, save money, and still live within your means.
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Find out how much you could save with a lower interest rate.
** Does not include mortgage insurance, closing costs, homeowners insurance, etc…