Being able to predict just how much your mortgage payment will be when you buy a house is very important. Knowing the size of your monthly payment can enable you to prevent getting too large of a mortgage, and it will also enable you to experiment with different terms to see which mortgage term options are best for your needs. There are many places online where you can see how to estimate your mortgage payment, but all mortgage calculators are not the same.
As you find out how to estimate your mortgage payment, you will find that many mortgage calculators offer different options, which enable users to get different information from each one. Some calculators, for instance, automatically assume a 30-year mortgage, such as this one at Money.CNN, which will not allow you to change the length of the mortgage. It does, however, enable you to enter the down payment, property taxes and home insurance costs, and then it provides results for the principal with interest, the taxes and insurance, and PMI, along with a total cost.
When looking at various websites to learn how to estimate your mortgage payment, you will quickly see that you will receive more accurate information if you are able to enter in more data. Those that only allow you to enter in two or three pieces of data should be considered less accurate.
Another interesting mortgage estimator can be found at MortgageCalculator.org. When you estimate mortgage payment here, it provides you with a number of final statistics that can help you compare the figures over the life of the mortgage. The results include the total amount of the mortgage to be paid, the total interest paid, the payoff date, the cost of PMI (if applicable), how much you will pay and how many payments, and it also gives you results if you choose to pay bi-monthly versus monthly.
Perhaps one of the most accurate mortgage calculators online is the one for FHA mortgages. This one lets you enter just about any possible factor into the equation including several types of lender fees, escrow amounts, title fees, seller concessions, and lender prepaid and impound costs.
Other mortgage calculators, such as the one here at PrimeRates, will enable you to enter the basic terms for three different mortgage companies, which lets you compare data side-by-side. Once the data has been entered, you can see the results in terms of your monthly payment, the closing costs, and the total amount paid over the life of the mortgage
It is important to understand that when learning how to estimate your mortgage payment on a home, that it is just an estimate. The truth is that only after you actually apply for a mortgage, will you be able to know the total cost. Your lender will determine how much you can borrow and the actual interest rate only after you actually apply. Changes in your credit score, your debt-to-credit ratio, and income may affect the final amount – even if pre-approved. It is also important to remember that different lenders may also offer different terms, too, which is why it is very important to get several mortgage offers before settling on one.