Using A Home Mortgage Calculator

Using A Home Mortgage Calculator

There are a variety of tools online that you can use to determine how much you can afford to pay for a home, how much the monthly payment will be based on the sale price of a home, and calculators to tell you whether it is better to rent or buy based on your personal situation. Using a home mortgage calculator online doesn't cost any money, and can be an extremely useful tool in your preparation and research for buying a home. Most calculators will have a form for you to fill out, and the most simple of them will ask you to input the principal price of the home, the interest rate, and the number of years that you will have the mortgage for, in order to determine what your monthly payment will be. A home mortgage calculator online can also be used for determining the monthly payment of other purchases if you'd like, such as car loans, or any other loan that have fixed monthly payments over a determined amount of years using simple interest amortization schedules. Simply enter the price of the item in the principal textbox of the form, the interest rate and the length of years you will be paying on the loan, and click the calculate button to find out what the monthly payment amount, including interest, would be. You can also take the analysis a step further, and use the other available calculators online to determine if you will be able to afford the monthly amount that you had the form calculate for you. You'll need a little more information to determine whether or not you can financially afford to purchase the home based on the monthly payment, such as the approximate amount of the yearly taxes, and the total of your other monthly payments.

The calculators that analyze whether or not you can afford the home will calculate how much your salary should be based on the information you've entered.

Home Mortgage Loan Information - Which Type Of Home Loan Is Best For You?

Home Mortgage Loan Information - Which Type Of Home Loan Is Best For You?

If you are considering buying a home, then you may be more than a little confused by all of the terms you hear about home loans. After all, lenders throw around words like fixed rate, balloon mortgages and adjustable rate mortgages without a thought. But if you aren't at least familiar with the basics—those terms can be pretty confusing! Here's a basic guide to the three most common types of home loans. Study it, and determine which one is right for you. Fixed Rate Home Loan If you are thinking about buying a home and staying in it until you pay it off, then you will probably want a fixed rate home loan. With this type of loan, you will be assigned a fixed interest rate, and then that rate will not change for the life of the loan.

If interest rates skyrocket, yours will remain the same. On the other hand, if they plummet, you will likely be paying a higher rate. (You can always refinance in order to get a lower rate.)Adjustable Rate Mortgage (ARM) The interest rate with this type of loan goes up and down with the market. In other words, if the interest rate is low, the rate on your home mortgage will be low, but if it's high, your loan interest rate will reflect it. And because the interest rate on a home mortgage loan affects the payments, you will never know from reporting period to reporting period what your monthly mortgage payments will be.

This type of loan obviously isn't for everyone. So, who might use an ARM? For starters, if you are purchasing a house for investment purposes and plan to sell it quickly, you might take advantage of low interest rates by getting this type of loan—particularly if it looks as if they may go lower. Another reason to use an ARM as a home loan is if you are buying a home in a time when interest rates are on the decline. You can take out an ARM, and then change it to a fixed loan once the interest rates bottom out. Balloon Mortgage With this type of loan, you will make monthly payments for a fixed amount of time, with a fixed interest rate. The difference is that at the end of the payment schedule, you will owe the unpaid balance in one lump sum.

If you use a balloon mortgage, you will find that the interest rates are much lower than either a fixed rate mortgage or an ARM. The obvious negative to this type of loan is that huge payment due at the end, but if you are planning to hold the house for a short period of time, then this might be the loan for you. By understanding the various types of home loans that are available to you, you will be better prepared to make a decision that is just right for you and your family.

Home Mortgage And Life Insurance Firm Serves Customers With New Website

Home Mortgage And Life Insurance Firm Serves Customers With New Website

Original Mortgage Source, LLC has recently updated their website to further serve the needs of their clients. The Ohio-based company specializes in providing home mortgage and life insurance options and a variety of lending solutions. The new website features an online glossary, home mortgage calculators, life insurance calculators, and is viewable in six different languages. The mortgage lender site's rejuvenated interface offers easier access to features in the home mortgage and life insurance Application Center, Tools and Resources, and Company Information sections. "Our policy is to provide pre-qualifications free of charge to all people serious about purchasing or refinancing their homes, investment properties, or commercial properties," said Timothy A. Primavera Sr., President and CEO of Original Mortgage Source, LLC. "Our ultimate goal is to help our customer get what they want. "Original Mortgage Source employs a professional staff of mortgage financial consultants who help determine the best home mortgage or life insurance solution for the current financial situation of their valued clients.

The Christian-owned and operated firm is state licensed, bonded, and insured to provide home mortgage solutions for homeowners and home purchasers, regardless of credit history. They also offer many different types of life insurance coverage that can be browsed on there website. Original Mortgage Source is a member of the Cleveland Better Business Bureau (BBB), the National Association of Mortgage Brokers (NAMB), the Ohio Association of Mortgage Brokers (OAMB) and the Ohio Farm Bureau Federation (OFBF). Original Mortgage Source offers a free two- to four-minute "Quick Mini-Application Form" to apply for a home mortgage or life insurance online. Visit www.OriginalMortgage.net and learn how to apply online for $150,000.00 life insurance in as little as fifteen minutes and with no physical examination required. About Original Mortgage Source, LLC: For over six years, Original Mortgage Source, LLC has been providing help to customers with home mortgage and life insurance needs. Their specialized staff of certified residential mortgage specialists and senior loan officers assists with loan programs, help with for-sale-by-owner homes, home warrantees, and consulting for homeowners and home purchasers alike, commercial and residential.

Home Mortgages: Does It Ever Make Sense To Pay Points?

Home Mortgages: Does It Ever Make Sense To Pay Points?

By Search EzineArticles.com

Interest rates on home mortgages are often quoted with and without points. A point equals one percent of the amount you are financing. This means that on a $150,000 mortgage, one point is $1500.00 and two points would be $3,000. These points are in addition to whatever other closing costs you might have.

I checked interest rates today in our state for 30-year fixed-rate mortgages and found a number of companies offering mortgages with no points. Here are a few examples (payment and interest only – no taxes or insurance).

0 Points 5.625 percent interest, $863 per month payment
0 Points, 5.750 percent interest, $875 per month payment
0 Points, 6.250 percent interest, $924 per month payment

Now, let's compare these with mortgages requiring points.

1 Point, 5.250 percent interest rate, $826 per month payment
2 Points 5.0 percent interest rate, $805 per month payment
2 Points, 5.125 percent interest rate, $817 per month payment

What this makes clear is that there is an inverse ratio between the number of points charged by the lender and the interest rate on the mortgage. In other words, the more points you pay, the less your interest rate will be. This means that when you pay points you are basically buying down your interest rate and, thus, your monthly payment. In fact, one point is usually equal to ¼ percent in the interest rate. So, as you can see from these charts, paying two points on a 30-year fixed-rate mortgage could save you as much as $50 a month or $600 a year.

So doesn't it make sense to always pay points?

Not necessarily. The important thing in deciding whether or not to pay points is the number of years you intend to stay in that house before you either refinance or buy another. Do the math and you will see that the longer you intend to stay in that house, the more sense it makes to pay points.

Let's go back to that two point example where the interest rate is an even five percent and the monthly payment $805. If your best deal in a no-points mortgage is 5.625 percent, yielding a payment of $863, then paying two points will save you $58 a month or $696.00 a year.
However, you must remember that on a $150,000 mortgage, two points equals $3,000. So you would need to say in that house for almost 4.5 years in order to just break even on the cost of the points.

So in answer to the question, should you pay points, the answer is a a strong maybe. If you intend to stay in the same house for seven or ten years, the answer is probably “yes.” If you believe you will refinance or sell the home in less than four years, the answer is that you will be money ahead to skip the points and pay the higher interest rate.

Home Mortgages: Does It Ever Make Sense To Pay Points?

Home Mortgages: Does It Ever Make Sense To Pay Points?

By Search EzineArticles.com

Interest rates on home mortgages are often quoted with and without points. A point equals one percent of the amount you are financing. This means that on a $150,000 mortgage, one point is $1500.00 and two points would be $3,000. These points are in addition to whatever other closing costs you might have.

I checked interest rates today in our state for 30-year fixed-rate mortgages and found a number of companies offering mortgages with no points. Here are a few examples (payment and interest only – no taxes or insurance).

0 Points 5.625 percent interest, $863 per month payment

0 Points, 5.750 percent interest, $875 per month payment

0 Points, 6.250 percent interest, $924 per month payment

Now, let's compare these with mortgages requiring points.

1 Point, 5.250 percent interest rate, $826 per month payment

2 Points 5.0 percent interest rate, $805 per month payment

2 Points, 5.125 percent interest rate, $817 per month payment

What this makes clear is that there is an inverse ratio between the number of points charged by the lender and the interest rate on the mortgage. In other words, the more points you pay, the less your interest rate will be. This means that when you pay points you are basically buying down your interest rate and, thus, your monthly payment. In fact, one point is usually equal to ¼ percent in the interest rate. So, as you can see from these charts, paying two points on a 30-year fixed-rate mortgage could save you as much as $50 a month or $600 a year.

So doesn't it make sense to always pay points?

Not necessarily. The important thing in deciding whether or not to pay points is the number of years you intend to stay in that house before you either refinance or buy another. Do the math and you will see that the longer you intend to stay in that house, the more sense it makes to pay points.

Let's go back to that two point example where the interest rate is an even five percent and the monthly payment $805. If your best deal in a no-points mortgage is 5.625 percent, yielding a payment of $863, then paying two points will save you $58 a month or $696.00 a year.
However, you must remember that on a $150,000 mortgage, two points equals $3,000. So you would need to say in that house for almost 4.5 years in order to just break even on the cost of the points.

So in answer to the question, should you pay points, the answer is a a strong maybe. If you intend to stay in the same house for seven or ten years, the answer is probably “yes.” If you believe you will refinance or sell the home in less than four years, the answer is that you will be money ahead to skip the points and pay the higher interest rate.

Does A No Closing Cost Loan Make Sense For You?

Home Mortgages: Does A No Closing Cost Loan Make Sense For You?

By Search EzineArticles.com

I have heard a number of radio ads and have seen many newspaper ads offering “no closing cost” home mortgages. These ads will tell you that you can get a new mortgage or refinance your existing mortgage at absolutely with absolutely no closing costs. There are no points, no charges for an appraisal, no charge for title insurance, no costs, period.

On the face of it, this sound likes a great deal and no-cost mortgages are especially popular with people who are refinancing an existing mortgage.

How does this work? Normally, a 30-year, fixed-rate mortgage, would have closing costs in the neighborhood of $2,000 to $3,000 or even more, depending on whether or not you pay points upfront. In fact, we talked to one mortgage broker two weeks ago about a mortgage on an investment property we own in another state and the closing costs were quoted as $7,000 – outrageous but at least not typical.

You've probably heard the old adage, “there is no such thing as a free lunch,” and these no-cost mortgages are yet another testimonial to the truth of this.

The way that no closing cost mortgages work is the lender gives the mortgage broker a rebate at closing which the broker then uses to pay the settlement costs. The way the lender gets its money back is by charging a higher interest rate. For example, for a $230,000, 30-year fixed rate mortgage with no upfront fees, your interest rate would most likely be a least 0.35% higher that if you paid one point and the customary closing costs.

Here's an example of what this means. As of this writing, there were mortgages available at 5.250 %, plus one point. As you probably know, one point equals one percent of the mortgage so one point on a $150,000 mortgage would be $1,500.

The monthly payment of this loan, excluding taxes and insurance is $826.00. The closing costs would be $1,500 plus the normal settlement costs of, say, $1,500, A for a total of $3,000.

Let's compare this with a no-cost mortgage. Assuming the interest rate is 0.35% higher as quoted earlier, the interest rate on a 30-year, fixed-rate mortgage would be 5.725%, yielding a monthly payment of $872.98 or about $46.00 per month vs. the loan where you would pay one point and the normal settlement costs.

Given a savings of $46.00 per month, it would take you about 65 months – or 5.5 years to make up for the $3,000 you paid in closing costs. This means that you need to determine how long you will stay in that house before deciding on a mortgage loan or a refi. If you intend to stay in that home and not refinance your mortgage for more than six years, it might make sense for you to pay the point and the normal settlement costs. On the other hand, if you believe you will sell that house or refinance it in less than five years, a no-cost mortgage might be better.

Just make sure you look at all the various alternatives and their long-term costs before you leap into a new mortgage.

How to Qualify For A Home Mortgage Loan

How to Qualify For A Home Mortgage Loan

By Jeff Slokum

Are you considering applying for a home mortgage to purchase your first home? If so, you should read the following tips below that will make the process easier!

If You Have a Good Credit History It Is Easier To Qualify For a Mortgage

By far the easiest way to qualify for a home mortgage loan is by establishing a good credit history. To establish a good credit history you need to be able to demonstrate responsible repayment of smaller loans, such as credit cards and car loans. The building of your credit history begins the day that you put the very first debt into your own name. For many Americans, this is at the age of eighteen.

Have a good solid credit history, shows the home mortgage lender that you take financial responsibility seriously. This makes you, what the lender terms, a low risk borrower. That is to say that you as a borrowers are a relatively low risk in comparison to other borrowers.

In return for your good credit history, the lender will approve your home mortgage loan application. In addition, he will offer you a lower interest rate on the loan than would be offered to other borrowers who are classified as high risk.

However, if your credit history is not as strong as you would like, that doesn’t mean that you will have to give up on getting a home mortgage loan. There are other things that you can do to increase your chances for mortgage approval.

Save a Sizeable Down Payment

Having a substantial down payment on the home that you wish to purchase and applying for a smaller home mortgage loan is another way to increase your chances of getting mortgage approval. Again, this goes back to the risk involved to the lender for financing your loan.

Many mortgage lenders will require that you have a 20% down payment on the home, and then they will grant home mortgage approval for the remaining 80% of the purchase cost. This helps to offset the lender risk. In the event that you are unable to keep up with monthly mortgage payments and you default on the loan, the lender will have a better chance of recovering his money through foreclosing on and selling the home if the loan is a smaller percentage of the market value of the home.

Therefore, if you can save 30% or more towards a down payment on your home, you will be lowering the risk to the lender and increasing your chances of getting mortgage approval.

You May Have To Accept a Higher Interest Rate on Your Mortgage Loan

If you wish to secure a mortgage despite your bad credit history, and you do not have a sizeable down payment saved up, you may have to agree to a mortgage at a higher interest rate than that which is being offered to low risk borrowers. This is because the lender will want to be compensated for his increased risk level.

This should not necessarily prevent you from taking the loan, though. If you secure the mortgage and are diligent about making timely payments, after paying on it for awhile you will improve your credit history. Then you can refinance the mortgage at a later date with a better rate offer.

Bad Credit Mortgage Loans Online

Bad Credit Mortgage Loans Online How Your Fico Credit Score Can Affect Your Loan Approval

By Search EzineArticles.com

When applying for a mortgage loan when you have a bad credit history. There are a few things you should know about your FICO score that will help you know what to expect from mortgage lenders.

With a credit score below 585, you will need to put at least 10-20% as a down payment on the property. You will not likely be approved for 100% financing at this point.

If you have a credit score of between 585-599, you will probably need around a 5% down payment in order to get an approval for a home mortgage loan. You will still need to get your approval from a subprime mortgage lender. You will need to use a lender who specializes in loans for people with "less than perfect credit" or situations that make it difficult for a person to get financing for their home.

If you have a credit score of 600 - 620, , you will probably be able to get an approval for 100% financing. You will also, in this situation, still need to use a subprime lender.

With a credit score of 620 or higher, you may be able to not only qualify for 100% financing, but be able to get a lower rate of only 1 - 2 percentage points above the prime rate.

If you have a recent bankruptcy or foreclosure, these estimates should still be accurate within 2 years after bankruptcy, repossession or foreclosure. After 2 years, it becomes easier to get approved for a mortgage loan, because more lenders will look at financing you after 2 years, whereas many lenders will not even consider your application until 2 years from the time of bankruptcy discharge or a foreclosure. After a 3 year mark from the time of bankruptcy or foreclosure, it becomes even easier to get an approval, in that many more lenders will consider your application after 3 years.

Getting a Home Mortgage is Quiet Simple

Below, you'll find extensive information on leading getting a home mortgage is quiet simple articles and products to help you on your way to success.

Getting A Home Mortgage Is Quite Simple
For months now, you have been looking at houses and home brochures and you have finally found it - the house that's just right. So now, you're feeling anxious to buy your new home, move in, and get settled. But this is not where your search ends. You still have one more important task to do and that is getting a home mortgage. Contrary to popular belief, getting a home mortgage is quite simple. All you need in order to make the right decision is to who where to look, what to look for, and what takes place when you apply for a home mortgage.

Knowing what to expect, especially if you are a first-time homebuyer, may make it easier for you to get through the process. Where to Shop some people may think that once they have found the house of their choice, their shopping days are over. Actually, choosing the house is only the first phase of the whole process. The next step is to find a home mortgage with payment terms that fit your budget. Thus, where you shop and what to look for are very important in this stage of home buying. The first logical place you might want to look for home mortgages is at the bank where you have your checking or savings account. However, this shouldn't be the only place you ought to look.

There is a wide variety of lending institutions that offer home mortgage loans, including savings and loan associations, commercial banks, mutual savings banks, and mortgage companies. The lesson therefore is never limit yourself to just one option when you can have several. Home mortgages may vary in features depending on the lending institution. One way to find the creditor with the most attractively priced loan is to look in your local newspaper and check to see if it publishes a shoppers' guide to home mortgage credit. These shoppers' guides are widely available and may be used to identify the lenders with low rates. However, basically, the way to find the best loan is to shop around. What to look for when shopping for home mortgage loans; you should have a basic idea on what to look for in a loan.

Keep in mind a few things that would serve as your eligibility criteria for a home mortgage. For example, what types of loans are available from a given institution? Does the lender make privately or federally insured or guaranteed loans? Some mortgage loans may be backed by a federal agency, such as the Federal Housing Administration (FHA loans) or the Department of Veterans Affairs (VA loans). Loans that aren't insured by the government are called conventional mortgages. The government-insured loans may be more attractive in terms of low down payment requirements but they may be more restrictive.

We strive to provide only quality articles, so if there is a specific topic related to home mortgage that you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our getting a home mortgage is quiet simple articles.

Ready for a Home Mortgage

Below, you'll find extensive information on leading ready for a home mortgage articles and products to help you on your way to success.

Are You Ready For A Home Mortgage Loan?

Buying a Home and Committing to a Mortgage can be very scary! A home mortgage loan is the largest debt that most Americans will take on in their life time. As such, making the decision to take out a mortgage is not one that most first time home buyers take lightly. Not only will your monthly mortgage payments probably be the largest bill that you face each month, but the total amount of debt realized with a home mortgage loan can have a staggering, and sobering effect on the first time home buyer. I can remember the months leading up to my decision to fill out a mortgage application. I had nightmares about loosing my job, not being able to keep up with my payments and finding myself homeless. And those were on the good nights when I was able to sleep at all! Committing to a Home Mortgage Doesn't Have To Cost You Your Sleep In hindsight I realize that the fear that I faced when considering a home mortgage loan was irrational and the stress that I put myself under unwarranted.

However, at the time, it surely didn't seem that way! Let's take a closer look at common mortgage fears. The major fear is that you won't be able to carry the debt responsibility and you will loose your house. Okay: worse case scenario, you are not able to keep up with the payments, the lender forecloses and you do loose your home. What are you really loosing? Something that you do not have right now anyway! Therefore, even with the worse case scenario, you will not be any worse off than you are right now. Furthermore, it is important to realize that the chances of the lender foreclosing are pretty slim. The lender doesn't really want your home, he wants you to make good on your home mortgage loan, and will usually work with you to make that happen. You should also remember that the fear of loosing your home is one that you already faced and survived. When you signed your first lease on an apartment you were taking that same chance.

If you were not able to pay your rent your landlord would have made you leave your home. Taking out a mortgage can be less scary once you realize that this is a fear you have already faced and conquered. Knowing You Can Afford the Mortgage Will Allay a Lot of Fears You can lesson the amount of fear that you will experience when you sign on the dotted line of a mortgage application if you are confident that you will be able to handle the monthly payments. Therefore, it is important to take stock of your financial situation before applying for a mortgage. Sit down with a real estate agent and honestly discuss your financial situation, this includes your income and your expenses. It only makes sense to determine how much of a home mortgage loan you can comfortably afford, and it is essential to having financial confidence and avoiding common mortgage fears. Now, quit worrying and go out and look for your new home!.

We strive to provide only quality articles, so if there is a specific topic related to home mortgage that you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our ready for a home mortgage articles.

Refinancing Your Home Mortgage Loan

Below, you'll find extensive information on leading refinancing your home mortgage articles and products to help you on your way to success.

Refinancing Your Home Mortgage Loan

Copyright 2005 You're considering refinancing your home mortgage loan to save money. Interest rates are the lowest they have been in decades. But, you're asking yourself, "Is refinancing worth my time and effort. Can I really save thousands of dollars on my home mortgage loan?" The answer is yes. There has never been a better time to refinance your home mortgage. Before you find a lender to refinance your current mortgage, there are a few key factors to know.


It's a good idea to decide how long you're going to stay in your home, your current interest rate, credit rating and the value of your home. These are all very important things to consider before you refinance your home. Refinancing your home is a great way to save thousands of dollars over the length of your mortgage loan. You could lower your monthly payments considerably. This will depend upon your current interest rate. With today's online mortgage companies, it's easy for them to give you all the information you need. This can help you to get a lower interest rate, because these mortgage companies are very competitive to earn your business.


You don't have to run all over the place pulling credit reports and talking to multiple lenders. Online mortgage companies can give you quotes from many different lenders. Refinancing your home with a lower interest rate can help reduce the term of your current mortgage. Your payments may stay the same, but the length of the loan and interest you save can make it worth your time. You would have to lower your rate considerably for this to make sense. Good mortgage brokers can give you different ideas on what is best for your situation.

Taking the time to look into refinancing your home can pay off. If your current mortgage payment is $1,890 and refinancing reduces it to $1,790, the difference of $100 can add up. It's a good idea to plan on staying in your home for at least 5 years for refinancing to make sense. This is because of the fees. If the fees are $2,000 and you plan on moving in 2 years, what would be the point? On the other hand, if you stay in your home for 5 years, in this example you could save $5,200 after the fees of $2,000.With interest rates so low, it is a great time to refinance your home.

Online mortgage lenders are now more competitive than ever for your business. Even if your credit is not perfect, you can still refinance your home mortgage. Now is the time to take advantage of the lowest interest rates in decades and save yourself thousands of dollars on your home mortgage loan..

We strive to provide only quality articles, so if there is a specific topic related to home mortgage that you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our refinancing your home mortgage articles.