In the excitement of qualifying for a loan, many prospective homeowners forget practical concerns, such as the final home loan payment, and the interest rate. Without a clear understanding of the process, a consumer may simply commit to the first mortgage he is offered.
One potential homeowner may be afraid that he will lose his dream-home, if he doesn’t make an offer as soon as possible. Another may be concerned that she will not be able to qualify for other loans. In either case, it is important to weigh the advantages and disadvantages of different loan options before making a firm commitment.
Lower Mortgage Payments by Comparing Loans
Comparing loans helps consumers see how much a loan will cost over the loan’s term, as well as helping choose the loan with lower mortgage payments. While mortgage brokers, banks, and other lenders throw around references to the number of points, the amount of down-payment, the percentage rate, and different types of loans, it can be difficult for consumers to understand how these factors affect the final cost of the loan. Using a loan calculator allows the consumer to input the various values quoted by the lender, to see what the bottom line is for each potential loan.
FHA/VA Home Loan Payment Calculator
Using a comprehensive house payment calculator allows the consumer to determine the home loan payment prior to committing to a loan that he will not be able to afford in the long-run. For those who can qualify for an FHA or VA loan, exploring the details of the two types of loan is possible with this FHA/VA home loan payment calculator.
In order to fully utilize the calculator, consumers will need to provide the following information:
- Sale price of the home
- Location of the home
- Mortgage term
- Interest rate
- Down Payment available
With this information, the FHA/VA home loan payment calculator will provide an estimate comparing an FHA loan, a VA loan, and a conventional loan for the home. The estimate will provide information about each type of loan, including:
- Loan amounts
- Monthly house payment
- down payment
- closing costs
Compare All Options for Mortgage Refinancing or New Purchases
Loan payment calculators offer consumers the ability to compare loan terms, which serves various purposes. Prior to choosing a home, consumers can change numbers around to decide how much of a home loan they can afford. After choosing a home, the calculators offer the consumer the ability to pick the best loan for her situation.