How a Mortgage Calculator Can Help You Navigate the Homebuying Process

Estimated reading time: 2.5 minutes

Imagine having a super handy tool at your fingertips that helps you, as a future homeowner, make smart decisions. Whether you’re a first-time or repeat buyer, a mortgage calculator is your secret weapon. But here's the catch: it's only as useful as the information you put into it. Let's dive into the ins and outs of using a mortgage calculator like a pro during your homebuying journey.

What Information is Necessary for an Accurate Calculation?

Your mortgage payment includes much more than just the principal and interest payment on your home loan. For a more accurate estimation on monthly payments and your payment schedule, it’s best to include additional information, like including HOA dues, homeowners insurance, mortgage insurance, and property tax.

Down Payment

This upfront cost is the money you pay to purchase your new home. The amount necessary for a down payment will depend on the loan program you choose. With our mortgage calculator, you can see how your monthly payment may be affected based on the percentage you put down.

Loan Term

Your loan term is the amount of time it takes to completely pay back your loan. Our calculator provides a visualization on what your payment schedule will look like based on 10-, 15-, 20-, or 30-year loan terms. Talk to your Loan Originator to find out if a different loan term would work for your financial situation.

Interest Rate

Your mortgage interest rate is determined by a mixture of factors. Using our calculator, you can plug in different rates to see how your monthly payment would change.

What’s the Difference Between a Mortgage Calculator and an Affordability Calculator?

While both provide helpful estimations, they have very different functions. A mortgage calculator is used to determine what your monthly payments may look like based on your loan information. An affordability calculator examines your income and monthly debt to give you a more concise understanding of how much home you can afford.

Why Should You Use a Mortgage Calculator?

Get to Know Different Loan Scenarios

Not every loan program will work for your finances and lifestyle. Once you have a better understanding of loan programs you may be comfortable with, you can adjust what’s inputted for the calculation.

Budget Creation

Saving for a home can feel daunting. While the details of your loan may change, using a mortgage calculator can give you a more precise estimation regarding how much you need to save.

Down Payment Preparation

Different loan programs have different down payment requirements. Once you know what programs you may qualify for, you can use the calculator to see how your payments and payment schedule may change.

Confidence Through the Mortgage Process

Whether it’s your first house or your fifth, McGlone Mortgage is here for you! We work hard to provide mortgage education every step of the way for our borrowers. Contact us today to be paired with an experienced Loan Originator that will support you from the first consultation all the way through closing.