Why you must use a mortgage calculator in your mortgage search
Mortgages are the largest commitment that people make during their life time, so it is vital that when you’re looking for a mortgage, you do your research. Not only does this mean that you should take your time in searching for a suitable property, but moreover it means that once that part of your search is done, you find the perfect mortgage to suit your needs.
Using a mortgage calculator during your mortgage search is vital; in this guide we look at what mortgage calculators are and how they can help you in your mortgage search.
What mortgage calculators are
Mortgage calculators enable you to enter various variables that affect the payments, and total amount of a mortgage. Although mortgage calculators can differ from website to website, they all do the exact same job.
You are able to enter differing property prices, APRs and mortgage terms. Through changing the various variables (such as the APR, or length of mortgage) you can see how each element alters the final amount paid and the monthly instalments.
Why mortgage calculators are a vital resource for mortgage searches
Mortgages are a huge investment, and are likely to account for the largest purchase you will ever make. This means that you have to be certain you can both afford the loan, as well as understanding completely how much you will pay over the life of the mortgage.
Many consumers are initially surprised to see just how large an amount is to be repaid when compared the property price, however it is important to remember that the length of the loan is always over a considerable period.
Additionally you should find out from your potential mortgage lender whether you can make over repayments. This means that many mortgage companies will allow you to pay off anything up to 10% of the total mortgages value per year. By doing so, you can greatly reduce both the time it takes to pay the mortgage off, as well as the interest paid.
One last piece of advice to bear in mind is that your monthly outgoings may also increase when you move into your property, depending upon where you are moving from/to. Bills such as council tax, water rates and building insurance (which you must have as most mortgages insist on it) will all need to be taken into account.
Mortgages are an understandably scary topic for most; buying a house represents the biggest purchase a person is ever likely to make. By undertaking a thorough mortgage search, and by using a mortgage calculator, you can be sure that you get a mortgage that suits your needs and budgetary constraints.