Use a mortgage calculator to analyze your refinance or your purchase
The thing to remember about mortgage payment calculators is that you should consult a mortgage professional to make sure you understand what you are looking at. We do this type of thing all day long so we will be able to give you the whole picture of what you are considering and all of the benefits and pitfalls.
There are all types of calculators to analyze your mortgage whether it is a purchase or a refinance. Depending on whether you are purchasing or refinancing, paying your own costs or having your costs paid for you will determine whether or not you like your loan and where your interest rate will end up.
If you are determining if a refinance it logical it is important to remember that you have all the time in the world because you are in the home. Interest rates have been pretty flat for quite a while so time is on your side. We have the process down to about three weeks again so it won't be too much of a hassle.
Another consideration is that you always have the option where "the bank" can pay costs for you. Many customers don't consider this option. Just the other day I had a previous customer claiming that his refinance was unjustified because he wasn't bringing his interest rate down a full 2%. If I bring your rate down 1% and pay 75% of your closing costs, THATS A LOAN and there is a true benefit there!
Considering a purchase, a good place to start for first time home buyers is the rent vs own calculator. At least for now, there is substantial savings taking into account the mortgage interest deduction on your taxes.
Another good part of our estimate is determining the estimate for taxes and insurance. Your previous owner may have been "homesteaded" for 10 years so when you move in that home, and your payment is based on the new tax structure, your taxes may be a completely different story.
In states like Florida where taxes have been all over the board during the last 5 years I recommend going to your local property appraiser web site to get an accurate estimate of your future taxes.
Debt ratio calculators and mortgage qualifier calculators really should be generated by the mortgage banker. Every deal in today's world is run through an automated underwriting engine where we have to take into account which income to use and which debts to carry. This type of knowhow comes with years in the business and studying our underwriting guidelines. Please give me a call today.
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