Mortgage calculators are amazing tools that many first-time homebuyers and homeowners use to find out their mortgage rates. But the question is how accurate they are?
You can easily find a mortgage calculator that is free, easy-to-use, and helps you in finding out how much money you can borrow. It is noteworthy that these calculators give you a rough idea and not the exact figure. Here is how you can use the mortgage calculator the smart way for your needs.
Mortgage Calculators don’t factor in all Costs.
There are numerous mortgage calculators available on the internet. But no calculator factors in the complete costs of buying a home. To find out the mortgage, you will need to fill in the blanks with your information and the calculator will show you the total cost per month, the total cost over the life of the mortgage, and how much you could borrow.
But a mortgage calculator will not be able to tell you the mortgage fees, legal fees, and estate agent fees. As a homebuyer, you need to know that you have to cover a lot of upfront costs. Along with these, there are other costs too like home insurance and every day running costs that your mortgage calculator won’t tell you about.
Just to make sure that you are not surprised by the costs that come after, you better make a list of every cost you will have to pay. Consider even the little costs like removal vans and storage to get the right estimate of what you will have to spend.
In general, mortgage calculators only give you an idea of the mortgage on the basis of the APR and the size of the down payment.
Mortgage Calculators are only a Step before Applying.
Just because mortgage calculators only give you an estimate of the mortgage doesn’t mean they aren’t useful. In fact, these must be your first port of call when you are planning to buy a home. You will get to know how much you'll be paying on your mortgage per month.
RateShop.ca is the best online platform that you must visit if you are looking forward to using a mortgage calculator. Our mortgage payment calculator will test four different scenarios at once so you can see exactly how a different interest rate or larger down payment can affect what you need to pay. Give us a visit to learn more about our calculator.
