Did You Know?

FHA loans are one of the best options for young, first-time home buyers who have not had as much time to save for a large down payment or establish a high credit score.

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Why You Should Use a Mortgage Calculator


Why You Should Use a Mortgage Calculator
Even if you aren’t considering your home loan options right this second, it’s smart to know your options if you decide to pursue a new home later. To that end, using a mortgage calculator is a smart choice for setting some basic budgeting parameters as you plan your path toward home ownership.

A mortgage calculator helps you plan for future financial scenarios, such as buying new or refinancing a current home. A mortgage calculator allows borrowers to compare current mortgage terms with potential refinance options. Users can determine the potential savings and assess whether refinancing is worthwhile by inputting the new interest rate and loan term.

Creating Financial Strategy to Own Your Home

A mortgage calculator can help you determine how much and how often to pay. Making extra principal payments on a mortgage can accelerate the payoff of a mortgage and save thousands of dollars in interest. Knowing how to use your income to maximize your investment is good.

A mortgage calculator can show you the effects of making additional payments each month. Depending on your strategy, it’s an option you may consider along with other financial obligations. How much will you help yourself by planning your repayment efforts?

By inputting the extra payment amount into the calculator, users can see how much sooner they can pay off their mortgage and how much money that may leave them for other purposes.

Understanding Amortization and Equity Building

A mortgage calculator can provide insights into the home loan repayment schedule and equity building. Some calculators are designed to generate a repayment schedule illustrating how each monthly payment is allocated between principal and interest over the life of the loan. 

This schedule provides valuable insights into how equity builds over time. And when you track the principal balance over time, you can estimate their equity in the home. 

Comparing Different Mortgage Products

Mortgage calculators help you compare different mortgage products, such as fixed-rate mortgages, adjustable-rate mortgages (ARMs), and government-backed loans. ARMs offer lower initial interest rates.

But those rates will change over time. A mortgage calculator can help users compare the potential costs of ARMs with fixed-rate mortgages, allowing them to consider the risks of each option.

Government-backed loans, such as FHA, VA, and USDA loans, have specific costs associated with those loans. A mortgage calculator can help users estimate the costs associated with a specific type of government-guaranteed home loan.
See Your Credit Scores From All 3 Bureaus
See Your Credit Scores From All 3 Bureaus

FHA Loan Articles

Similarities and Differences Between Co-Borrowers and Cosigners

You may have heard the terms co-borrower and cosigner in connection with your FHA loan process, but aren't sure about the distinction. Both a co-borrower and a cosigner can help a primary borrower qualify for a mortgage, but they have different roles and responsibilities.

FHA Credit Requirements and FICO Scores

The Federal Housing Administration has specific credit requirements and guidelines for borrowers looking to buy or refinance homes with an FHA loan. In addition to what FHA guidelines state, lenders may have more stringent requirements that may vary from one lender to another.

How Is a Mortgage Interest Rate Different than APR

Mortgage APR (Annual Percentage Rate) and a loan's interest rate are two different things, although they are closely related. Understanding the difference is an important part of a borrower's analysis of the true cost of their mortgage.

Refinancing With Various FHA Loan Options

FHA refinance loans allow homeowners with existing FHA loans to refinance their mortgages. These loans are designed to help borrowers take advantage of lower interest rates, reduce their monthly mortgage payments, or access equity in their homes for various purposes.

Can I Get a No Money Down FHA Loan?

FHA loans typically require a minimum down payment of 3.5% of the purchase price of the home with the right credit score. This means that if you're buying a house for $240,000, you would need to make a down payment of at least $8,400.

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