Friday, November 13th, 2009 at
11:54 am
Mortgage calculators are tools that allow you to estimate your monthly payments on a fixed rate mortgage, calculate your total cost of borrowing and even give you an approximation of the size of mortgage that you can afford.
A basic mortgage calculator will take the sale price of the home, the size of the down payment, the length or term of the mortgage and the annual interest rate to come up with an estimation of your monthly payments.
Private Mortgage Insurance Calculator
A good mortgage calculator will also include the cost of private mortgage insurance (PMI) for down payments that are less than 20% of the sale cost.
For example, a basic mortgage calculator may calculate a $200,000 mortgage with $20,000 down and an interest rate of 6.5% amortized over 30 years as having a monthly payment of $1137. However, a mortgage calculator that includes the estimated $100 per month for private mortgage insurance (payable until the 20% down on the total capital is reached) will give you a better approximation of your monthly payments.
Property Tax Calculator
An even better mortgage payment calculator will ask about property taxes in your area. Typically, the mortgage calculator will ask you for the property’s prior tax rate. From there, it’ll calculate an estimated basic increase in property tax values and give you an approximation of your expected monthly payments. Remember, a $200,000 home can expect to pay around $2000 a year in property taxes; that’s an extra $166 a month.
Extra Payment Calculator
An extra payment calculator lets you input your expected mortgage payments along with an estimated additional monthly or yearly payment. In turn, it’ll tell you how that amount affects the final date your mortgage is paid off.
For example, as stated earlier, a $180,000 30-year mortgage with a 6.5% interest rate will have monthly payments of approximately $1137. If the mortgage starts on Jan 01, 2009, the estimated pay-off date is Jan 01, 2039.
An extra payment calculator will show you that adding just $50 per month to your payments will push your mortgage end date up to 2035 (that’s 4 years earlier), and adding $100 each month will bring it up to 2032 (that’s 7 years earlier).
The Problem with Mortgage Calculators
Unfortunately, mortgage calculators don’t always reflect the truth of sometimes fluctuating interest rates, early payment penalties, and the longer terms on refinancing mortgages.
While a mortgage calculator can give you useful estimates, it’s always best to speak directly with a lender or mortgage professional to gain a clear and accurate idea of your exact monthly mortgage costs.
By: Jack Burnette
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Tuesday, September 1st, 2009 at
4:13 pm
Right now is the perfect time to buy a home due to the combination of the tax credit for first time homeowners being offered by the government and the recent increase of foreclosed homes currently on the market, all of which are in good condition. It is still possible for you to get a mortgage loan, even if you are one of the many Americans with bad credit. You’ll need to find the type of loan that fits your situation, such as bad credit mortgage loans, and a great real estate agent who knows the current market can help you with that. Of course, it’s always a important for you do your own research, you shouldn’t just rely on your agent for information.
It will be worth the effort if you have to explore alternate means to find a loan, because if you have bad credit, mortgage loans, particularly new ones, can be difficult to obtain. For people with a less than perfect credit history, it can be hard to find a bank or mortgage loan company that are willing offer home loans. Those that are willing to finance people with poor credit, only offer loans with outrageous down payments and astronomical interest rates. So if you have less than stellar credit, you need to look into lenders that specialize in bad credit mortgage loans.
It will be next to impossible to find a 100% loan right now if you don’t have enough money put aside for a down payment. Fortunately, USDA guaranteed rural development home loans are now available for you to take advantage of. You don’t have to have mortgage insurance or pay a down payment to qualify for this loan. All you need is to be able to provide proof of steady income that falls within the moderate income range for the area you are looking to buy, and you can qualify for this bad credit mortgage loan. The homes you will have to choose from are pre-approved by the USDA and are generally located in sparsely populated areas. While this doesn’t necessarily mean you have to live in the middle of nowhere, you need to realize that this bad credit mortgage loan may not be for you if you are averse to country living.
If you are willing to be open-minded about your options, bad credit mortgage loans are available for you to take advantage of. You also need to realize that there are some companies who will be looking to take claim to have great loans for people with poor credit, but they are actually looking to take advantage of your eagerness to get a loan in this buyer’s market, so be careful. Just be sure you take a close look at the interest and read the fine print.
By: Andrea M Jones
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Sunday, July 26th, 2009 at
12:19 am
Ideally, traditional mortgage lenders want new homebuyers to have a 20%
down payment when purchasing a new home. Thus, if purchasing a $200,000
home, you should be prepared to have $40,000 as a down payment.
Unfortunately, many people do not have this kind of money lying around.
For this matter, private mortgage insurance (PMI) was created as a way
for mortgage companies to recoup their money if a homeowner defaults on
the loan. There are various loans available to assist people with down
payments. In some instances, homeowners can obtain 100% financing, and
avoid PMI
What is Private Mortgage Insurance?
Because Americans are earning less money, and home prices are steadily
increasing, the majority of the population is unable to save the
recommended down payment of 20%. In order to make owning a home possible,
mortgage companies created a particular mortgage insurance, (PMI), for
people with less than 20% to put down on a home. This insurance protects
the lender if you default on the mortgage.
How to Avoid Paying Private Mortgage Insurance
On average, PMI may increase your mortgage payment by $100 – sometimes
less, sometimes more. However, there are ways to avoid paying this
additional insurance. The obvious involves having at least 20% as a down
payment. If this is not an option, homeowner may agree to a higher
interest rate. Another tactic entails getting approved for 100% financing.
How Does 100% Mortgage Financing Work?
100% mortgage financing makes it possible to buy a home with no money
down. Also referred to as a piggyback loan or 80/20 mortgage loan, 100%
mortgage financing involves obtaining a first mortgage for 80% of the
home cost, and a second mortgage, or home equity loan, for 20% of the
home cost. Together, the first and second mortgage allows a home purchase
with no money down, and no private mortgage insurance.
Visit www.abcloanguide.com to find a list of reputable online lenders for 100% mortgage
financing. To qualify for 100% mortgage financing, you must have good credit. In
addition, homebuyers must be in a financial position to pay closing
costs. Of course, there are ways to avoid this out-of-pocket expense. This
option involves 103% mortgage financing, which is intended to assist
homebuyers with down payments and closing fees.
By: Carrie Reeder
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