If you need loan financing to purchase a home, a Mortgage Loan Calculator is an essential tool that allows you to get an estimate of the monthly loan payment for a specific loan amount.

The information required to use the Mortgage Loan Calculator are:

  • the loan amount – most likely the total amount needed to cover the purchase price and fees to purchase the home
  • the rate of interest the bank charges
  • the length of time the lender will give you to pay the mortgage (locally this is usually 30 years but could be less based on the number of years before you reach the retirement age.
  • the amount that you may need to deposit.  This is optional.

This tool is useful to allow prospective home owners to get an idea of what mortgage amount they can afford.

The affordability question must be one of the first answered by prospective home buyers when they decide to purchase a home.

We have seen many instances when prospective home buyers fell in love with homes before consulting with a lender.  More often than we like to see, this love affair ends up in heartbreak when the prospect goes to the back after visiting the property and finds out that they could not afford it. In addition, they wasted their time and energy, as well as costed the owner of the property time and convenience in futility.

The main benefits of visiting the lender before even viewing properties is so that you can act quickly when you find a property that you like and can afford. Remember, you are not the only one searching for a home and many sellers are not willing to wait on you while you work out your financing if someone else comes forward with a cheque!

Also, you will save time, inconvenience and heartbreak that may result in looking at properties that you cannot afford.  On the other side of the coin, you may think that you can afford less than you really can and then you would spend time looking at less than satisfactory properties that cost below what you really can afford.

Here is our mortgage calculator that you should use to estimate the monthly payment for any home for sale on our website.

[do_widget "responsive mortgage calculator"]