Making a Mortgage Calculator Work for You

Buying a new home can be a minefield, there is so much to think about and it can be easy to get confused. There are so many different types of mortgage on the market that it can be hard to make a decision about what is right for you. One tool that anyone can try to help them to find out how much they could borrow from a mortgage lender is a mortgage calculator.

A mortgage calculator is an online tool that calculates the possible amount of money an individual or couple could borrow for a mortgage. To use a mortgage calculator you first need to enter financial details such as monthly salary / salaries, outgoings such as loans, credit cards, hire purchase agreements and so on. Then you can select the repayment term that you would like to aim for – this can be anything from 10 years or so all the way up to 35 years or more in some cases. Once you have done this you can then get the mortgage calculator to calculate how much you could, in theory, borrow and how much your monthly repayments would be.

This can be a huge help to anyone who is thinking of applying for a mortgage as often it can be hard to work out how much you could potentially borrow. However you need to be aware that the calculations that a mortgage calculator comes up with are not a mortgage offer and the amount you could borrow could change. It does provide a ball park figure which can be a huge help to first time buyers in particular.

When you use a mortgage calculator you can also alter the figures. So for example if you initially thought that you would like a 15 year mortgage then change your mind you can easily alter the repayment term and do a recalculation. In addition to this when you use a mortgage calculator you are under no financial obligation to take out a mortgage. You can use one purely for informational purposes, the choice is yours.

Often using a mortgage calculator can play a useful role when you are taking the first steps towards getting a mortgage. It can be daunting to speak to lenders and financial experts, so using a calculator can give you an idea of what you can expect to be offered. You can also use a mortgage calculator to work out a budget for when you do secure a mortgage. This can be invaluable for anyone who has never thought about this before and is novice to the mortgage market.

So if you are looking into obtaining a mortgage and would like a way to calculate what you could potentially borrow you should use a mortgage calculator. It is the smart way to find out more about your financial position and it will not cost you a penny to use one. Make a mortgage calculator work for you and make sure that you have done your homework before you apply.