Buying a home is one of the biggest financial decisions you will ever make. Understanding what you can actually afford is key to making sure your monthly mortgage payments don’t cause you to become house poor.
Buying a Home
How to use the Mortgage Calculator:
- Understand your current monthly mortgage payments and how much you would need to pay extra per month to reach your loan payoff faster.
- Home price – this is the purchase price or the current value of your home if you are refinancing.
- Down payment – this is the cash you are putting down upfront on the home or the amount of equity you have if you are refinancing.
- Interest rate (%) – this is the percentage of interest you are expected to pay for the amount of money you are borrowing.
- Loan term – this is the length of the loan, usually expressed in the number of years it would take for you to pay off the mortgage.