Buying a house is a complicated and drawn out process. You can’t just look through a list of homes for sale, point at one, and buy it that afternoon. Homes have to be inspected, mortgages must be applied for and approved, you have to look at the neighborhood they’re in and how the surrounding area is developing, and there are other people that are shopping for a new house and may want to buy the one you’re looking at.
And because it’s one of the most expensive things you can buy, you don’t want to get a 15 to 30 year, $200,000+ home loan for a house you “kind of like”. You have to love it. The tiny things you think you can overlook now may end up becoming eyesores 5 years from now. To top it all off, you have to be able to afford the home you’re purchasing or you can end up in foreclosure a few years from now.
To make sure your new home loan fits nicely into your budget, you should use a home loan calculator to get an idea of what your monthly mortgage is going to be.
How to use a home loan calculator
Applying for too many home loans at one time may negatively impact your credit and make getting approved for a mortgage that much more difficult. Using our home loan calculator will help break down a house’s sticker price into a monthly payment. This way, you’ll know which houses you can afford and when it’s time to actually apply for a loan.
To use this calculator, simply enter the information in the bullets below into their respective fields and your monthly payment figure will update along the way.
- Home price: The value of the home you hope to buy.
- Down payment: The amount you’ll be putting down at signing
- Interest rate: The percentage you expect to be approved for
- Loan term: The number of years your mortgage is financed for (normally 15 or 30 years)