Are you thinking about using a mortgage to purchase a new home or refinancing a current mortgage? A mortgage is a major financial investment that requires complex mathematical calculations to fully understand. Using a mortgage calculator in Brampton can help you quickly and accurately predict your mortgage payment and amortization schedule with just a few pieces of information. In order to start using a mortgage calculator, you will need the following information.

 

 

To use a mortgage calculator in Brampton or anywhere else, you need to know the price of the home or the total of refinancing. If you are getting a mortgage to purchase a new home, the mortgage amount will be the price of the new home minus how much you intend to contribute as a down payment. If you are thinking about refinancing your current mortgage, a mortgage calculator will make the math easier. Use your outstanding mortgage balance as the mortgage amount.

 

 

The mortgage term or amortization period is the number of years over which you will repay the loan. The most common mortgage amortization periods are 20 years and 25 years. If you are purchasing a new home, you can begin calculations by choosing a mortgage loan that lasts 25 years. If you are a homeowner considering refinancing, you may opt for a shorter term.

 

 

The payment type determines the frequency of payments. Monthly payments will have 12 payments per year, weekly payments will be 52 payments per year, bi-weekly payments will be 26 payments per year, and bi-monthly payments will be 24 payments per year. Choose the payment type that best suits your individual situation.

 

 

You can estimate the interest rate on a new mortgage by checking the rates the banks are offering for your area. Once you estimate a rate, your actual rate may be slightly different. With a mortgage calculator, you have the option to enter different interest rates to get an idea of what your monthly payments will be in different scenarios. Different lenders will offer different rates for every one of the mortgage products, so you should play around with these numbers and run the calculations. This will help you see which combination of mortgage amount, mortgage term and interest rate gives you a monthly payment that suits your budget.

 

 

If you are purchasing a new home, this date will be the closing date. If you are refinancing your current mortgage, set the date closest to the date you will refinance.

 

 

There are numerous closing costs which you will need to factor in to your overall calculations. Closing cost will include everything from home appraisal fees to property taxes, and will vary depending on the home and the city you live in.

 

Once you have completed your mortgage predictions using a mortgage calculator in Brampton, get in touch with a mortgage specialist who will work with you to create a mortgage solution that benefits you. A mortgage specialist can help you structure your mortgage in a smart and effective way.