Quick tips for using an interest only mortgage calculator

If you’re thinking about an interest-only loan, you’re not alone. Interest-only mortgage loans have become more prevalent in the current low-rate market. With these loans, the borrowers only pay the interest on their principal balance – that means that your principal doesn’t change. The term is typically five or 10 years, after which the principal is amortized. Generally, the initial interest-only payments are lower, making it worthwhile.

But because…

Make extra mortgage payments to cut your interest

Over the life of your home loan, you’ll end up paying a lot in interest — sometimes more than the original loan amount. But there’s an easy way to avoid that — make extra payments on your mortgage. It’s simple enough, but making extra monthly, yearly or lump sum payments can really keep some green in your savings account. In order to estimate how much you’ll save, you can…

First time home buyers, start here

Are you a first time home buyer? Before you sign up for a 30-year mortgage, make sure you can actually afford to buy a home.

The best way to do that is to first ascertain how much of your income you can afford to devote to a mortgage. Then, use a mortgage calculator to figure out the size of the mortgage you can handle. Those two figures should give…

When to use a simple mortgage calculator

Oh, the ease of mortgage calculators. It may not seem that amazing to you, but I remember a time when I couldn’t just jump online and punch in the numbers. Instead, I had to sit down and scrutinize over real math – the agony! There are several calculations that a simple mortgage calculator can perform. Here are a few uses that might help you out on the way…

Will you qualify for the best rates?

One way mortgage lenders asses your risk is to use your loan-to-value ratio – LTV. The LTV ratio is the amount of the loan you take out vs. the appraised value of the house. For example, if the appraised value of your home is $200,000, and you borrow $170,000 to purchase the home, your ratio is $170,000/$200,000 – 85…

How much can you borrow with a HELOC?

Getting a HELOC, home equity line of credit, isn’t always the most advisable idea. But it can come in handy in an emergency. Lenders have tightened up their requirements, but if you have good credit – and decent equity in your home – you might be able to tap into it.

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Own or rent? Let a mortgage calculator do the work

Real estate can be a good investment – especially right now when rates are low. But purchasing a home isn’t always the right move. Depending on your situation, sometimes renting can be just as beneficial.

Home ownership has its advantages – major tax benefits being just one of them – but owning a home costs more than just the…

How much can you borrow from the bank?

With mortgage rates at record lows, you might be thinking about trying to get more home for your money. The amount of home you can afford is really a combination of how much the bank will lend you and the amount of down payment you can dig up. But since the real estate market took a dive, lenders have tightened up their requirements – that means you really need…

Can you afford a home in a shaky economy?

There is no question that the U.S. economy has been a bit unsteady. Recent unemployment issues combined with our country’s debt has left some homeowners questioning whether or not purchasing a home is really a good idea in this market. I’ve been getting a lot of questions from friends that are looking to buy about whether or not they should purchase a new home in this economy. My answer…

Mortgage calculator: Thinking about an ARM

While an adjustable rate mortgage – ARM – might initially offer a lower interest rate, whether or not you should take the risk depends on your situation. A mortgage calculator can help you decide if the gamble is worth the payoff.

ARMs have a rate that is adjustable. They come with an initial interest rate – generally significantly lower…