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Unlocking the Secrets of Mortgage Calculations: A Comprehensive Guide to Understanding Your Monthly Payments

Moneymagpie Team 27th Apr 2023 No Comments

Reading Time: 3 minutes

If you find a home and take out a loan, you know that you’ll have a monthly mortgage payment. But you can’t simply divide the cost of the house by the number of months on the loan’s term. It would be nice if it were that easy, but a lot more goes into calculating your monthly payments. What’s My Payment is a resource for learning more about this and how it impacts your finances. Understanding what you can afford and budgeting wisely is a vital step when purchasing a home. Here’s what you can expect to find on the website.

Homebuyer Calculators

One of the best features of the website is the very useful homebuyer calculators. These tools help you be as prepared as you can be when you purchase a home. With the loan calculators, you can put in the cost of the home you’re interested in. Alternatively, you can input the amount you can afford to spend on a home.

Use the features to change the interest rate, loan term and credit score according to your information. You can also take insurance and taxes into account. Then the site will produce a good picture of what you can expect to pay each month, with all factors considered. The site offers calculators for several loan types, including USDA loans, conventional loans and FHA loans. You can change the figures as many times as you like to get different views of various budget values.

Homeowner Calculators

If you already own a home and want to refinance it, What’s My Payment can help with that too. You’ll provide the cost of the current loan as well as information about it, including the term, date of purchase and interest rate. You can then choose a refinance loan and get an idea of what the new payment may be, which is often lower, making a refinance an attractive option for many homeowners.

Veteran Calculators

Veterans or eligible living spouses can often take advantage of loans with additional perks. The site offers the ability to determine how much a monthly payment could be with a VA loan. The information necessary is similar to the above calculators, including the cost of the loan, interest rate, loan term and credit score. The state you live in could also play a role in your total monthly cost. The site also offers calculators for VA entitlement, VA cash out and VA Interest Rate Reduction Refinance Loan (IRRRL). Each of these calculators can help you determine what impact a loan refinance will have on your budget. Often, there are ways to lower your payments and save money on the life of your loan, especially if you have a high credit score.

Home Affordability Calculator

If you’re unsure what you can afford or are new to the home-buying process, the Home Affordability Calculator can help. This tool allows you to input your income information, how much you have for a down payment and what your current debt is. This helps produce a mortgage payment that fits within your budget. The site will offer a home price that you can afford so you have a place to start when you begin looking at houses. This is a valuable way to keep from falling in love with a house and then finding out you can’t afford to buy it.

Understanding your finances is an important part of home ownership. It helps you determine what you can afford so you don’t get in over your head when you buy a house. You’ll have a payment you’re comfortable with and a house you love. With a little bit of work, you’ll soon be living in the home of your dreams.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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