New Home or Refinancing? What You Need to Know Before You Apply for a Mortgage


Thinking of buying a new home ☑

if you think about buying a new house you should read these little tips

Are you thinking about buying a new home or refinancing an existing one, but are wondering what the financial implications are, and how it will impact your current life style? These are naturally on the minds of all home owners and potential home owners. Buying a house is a big expense and making payments is something you will have to commit to for many years to come. So how does one calculate your current income and expenditures, to find out what your monthly repayments will be and whether you can afford them ?

Thinking of buying a new home or refinancing an existing one

Home Loans in the United States

Of course you can whip out your pen and paper, Calculator, bills and income statements and do it the good old fashion way. But the internet has helped lessen the hassle with the use of online home loan calculators. These home loan calculators are online tools which can be found on many bank and insurance sites, they are quick and easy to use, and can be used to calculate a variety of aspects relating to your home loan. You can calculate what loan amount you qualify for. You can calculate how fast you can pay off your loan by increasing your monthly payments. And you can even calculate how much it will cost you to transfer your existing home loan to another bank.

buying a new home or refinancing an existing one

Let's say for instance that you are looking to purchase your first home. Your first step would be finding out how big a bond you can afford based on your income and expenses, applicable interest rates and preferred term. By going on line you can choose a home loan calculator from one of many sites. If you prefer to take out a bond with your bank then check out their site first. You will be presented with a questionnaire type form, and all you have to do is fill in the amounts of money. There will be different sections on this form such as; income- salary and rental income, expenses- house hold, transport, insurance policies and other. Then fill in the applicable interest rate, and the preferred term. There are also some other amounts which need to be filled in. Once you have filled in all the fields you just have to click calculate, and it's done!

Once you have established your loan amount you can then use the monthly repayment calculator, which will calculate your monthly repayments based on the loan amount, the preferred term and the interest rates.

Home Loans in the United States

Another home loan calculator which is very useful, is the increased installment calculator. You can calculate how much money you can save by increasing your installments every month. So by paying more on your bond every month you can save on interest and shorten the amount of time spent paying your bond.

Now as I have said before all of these calculations can be made the good old fashion way with paper and pen, but why go the long, and tiresome route when online home loan calculators make calculating quicker and easier!

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