Whether you are looking to buy a house, a condo, or to refinance a current home, you’ll want to know how much your monthly or bi-weekly mortgage payment will be. Here is a valuable tool to get that answer: a mortgage payment calculator. Here are a few tips for using this calculator:
If you are buying a house or condo
As you may have heard, new mortgage rules are in effect as of October 2016. Under these new rules, if a buyer is putting down less than 20% on the home, he/she will have to qualify at a higher rate (posted rate around 4.6%).
But this calculator will figure out how much your mortgage payment will be at any rate you plug into it. So simply plug in the total mortgage amount, select the payment period (monthly, every two weeks, etc) and chose the mortgage rate. Current discount rates run from around 2.4% to 2.75%.
If you are re-financing
If you are a home-owner whose mortgage is up for renewal, remember that you are NOT obligated to simply renew with the current lender. In fact, often it will be financially beneficial to switch to another lender. Not sure what to do? Contact me for a referral.
Compare home owning to renting
By using this mortgage payment calculator, you can figure out your potential payment and compare it to your current rent. You will most likely find that your can own a home (house or condo) for less than your current rent. Also, check here for the complete picture about the costs of home ownership.