The Benefits of a Mortgage Calculator:

When choosing what mortgage would best fit your financial needs. The most important tool at your disposal is a mortgage calculator. A mortgage calculator is a program available on the websites of all of these banks and many others.

This tool allows the user to quickly determine the financial impact of changes in the variables of a mortgage financing contract. The major variables include loan principal balance, periodic compound interest rate, number of payments per year, total number of payments and the regular payment amount. Prior to the availability of this software, borrowers wishing to understand the implications of changes to these variables had to turn to compound interest rate tables. These tables require a working understanding of compound interest mathematics. Mortgage calculators make answers to questions regarding the impact of changes in mortgage variables available to everyone.

Mortgage Payment Calculator free tool:

How to calculate house payment?

Example of a mortgage payment for 30 years (Total of 360 mortgage payments)

Mortgage Tool free
Example 360 Mortgage Payments

Mortgage Payment calculators are automatic tools that allow users to determine the financial impact of changes to one or more variables in a mortgage loan agreement. Mortgage calculators are used by consumers to determine monthly payments and by mortgage providers to determine an applicant’s financial situation. Buy a new home in Miami with us! Fill the Form!

Comparing mortgage terms (i.e. 15, 20, 30 year)

Different mortgage terms and rates can make the loan selection process confusing, especially if you don’t plan on keeping the loan for the full term. Use this calculator to determine the total cost in today’s dollars of various mortgage alternatives taking into account your opportunity cost of money.

How do closing costs impact the interest rate?

If you choose to finance your closing costs, the monthly loan payments will be higher than if you had paid the closing costs out-of-pocket. In order to help borrowers compare loans, lenders use a standard calculation called annual percentage rates (APR) which takes into account the closing costs. Use this calculator to itemize the closing costs and to compare loans with different rates, fees or terms.

Getting a Fixed-Rate Mortgage

Article highlights:

  • Term limits of a fixed-rate mortgage
  • When fixed-rate is better than adjustable-rate loans
  • How to shop around for the best rates

A fixed-rate mortgage is a loan where the interest rate on the mortgage note remains the same through the entire term of the loan. Fixed-rate mortgages are available in 15, 20, 25 and 30-year terms. Some mortgage loans are available for shorter terms with a balloon, lump sum payment, at the end of the term. A newer type of mortgage is called a hybrid fixed-rate, combining fixed-rate and adjustable rate mortgages (ARMs), meaning the rate is not fixed for the entire term of the loan. These loans offer lower introductory rates for the first several years and then change to a higher rate for the majority of the loan term.

Fixed-rate mortgages are the way to go if you plan on staying in your home for more than five years. Also, they are currently the preferred loan vehicle, seeing that ARMs are much harder to come by due to today’s credit crunch. When comparing interest rates between a fixed-rate and ARMs, if the difference is less than 0.5 percent, you’re better off with a fixed-rate. Unless you have a crystal ball, it is often difficult to predict interest-rate cycles. A fixed-rate assures you a predictable monthly payment for the term of your loan. Make sure any loan you are interested in does not have a prepayment penalty clause in the mortgage note. Without one, you are free to shop for a better rate if you decide it is a good time interest-rate-wise to refinance.

Be careful of teaser rates

Mortgage interest rates are a competitive arena. Don’t be lured in by teaser rates by some loan brokers. Those low rates come attached with high fees, points (interest charges you pay upfront when you close on your loan) and ancillary costs related to the mortgage. You should remember to shop for the lowest rate accompanied by the lowest fees. National mortgage lending companies who originate and loans and hold them in their own investment portfolios, typically offer the lowest rates and fees.

Opting for an Adjustable-Rate Mortgage

Article:

  • Adjustable-rate mortgages (ARMs) in today’s market
  • Knowing if an ARM is right for you
  • ARM pitfalls and other things to consider

By now, you’ve heard plenty about the housing credit crises spurred by a high number of defaults on adjustable-rate mortgages (ARMs), notoriously known as “subprime mortgages.” These mortgages were given to low-income borrowers with subprime credit ratings, causing many of these folks to foreclose on their homes. Due to this current crunch, have become less appealing and available. And with today’s falling interest rates, fixed-rate mortgages are the way to go. Still, you should know about ARMs to see if they are a viable financing option for your home purchase, if not now, then in the future.

ARM Mortgage Loan

An ARM is a mortgage loan that has an interest rate that periodically changes or adjusts. The rate can remain static for an initial term, called a “teaser period” and then it adjusts annually, based on various economic indexes. The initial, or teaser, rate may last anywhere between one to several years. And here’s where the risk-taking aspect of ARMs comes in: Interest rates can go down, but they also can go way up.

Which has been the case recently and the reason why many homeowners with ARMS have had a tough time meeting their monthly payments?

ARMs have caps or limits on how much the interest can rise with each adjustment, as well as an overall cap over the term of the loan. The caps are an important area to consider before you sign a mortgage note. You might easily qualify for the introductory interest rate, but with the first or several subsequent adjustments, your payments may become unaffordable.

When ARMs work

ARMs are a good idea if their initial interest-rate is more than 1 percent lower than that of a fixed-rate mortgage. Also, if you only plan to be in the home for only several years or a shorter time before the first rate adjustment, the lower rate in the teaser period may significantly decrease your monthly payments — something a fixed-rate mortgage wouldn’t do. On the other hand, if the going rate on a fixed-rate mortgage is only 0.15% higher than an ARM, you’re better off with a fixed.

Some first-time buyers like ARMs, because their loan payments grow as their income does. If you know that a job promotion is coming or you’ll be receiving a large gift or inheritance, an ARM may be a good loan to help you jump into homeownership and then transition financially in steps as your income increases. On the other hand, if you’re not a risk-taker and will lose sleep worrying if your rate will adjust higher, then get a predictable fixed-rate.

ARM pitfalls

Not all ARM’s are equal. You have to be well aware of their ups and downs. Never agree to a prepayment penalty, this locks you into the attractive rate, typically, until it readjusts to a higher one. Prepayment penalties can be steep, and if for some reason you have to sell, the penalty can wreak havoc with the equity you’ve built up in your home. Also, ask how much the maximum interest-rate caps are.

Is ARM a mortgage loan?

Has an interest rate that periodically changes or adjusts. The rate can remain static for an initial term — called a “teaser period” — and then it adjusts annually, based on various economic indexes. The initial, or teaser, rate may last anywhere between one to several years. And here’s where the risk-taking aspect of ARMs comes in: Interest rates can go down, but they also can go way up — which has been the case recently and the reason why many homeowners with ARMS have had a tough time meeting their monthly payments.

Keep in mind that your first adjustment typically occurs after one, three or five years. After the initial adjustment, it could reset as frequently as every year. The adjustments are tied to financial indexes, which you can’t control. So if you want peace of mind, you’re better off with a fixed-rate mortgage than a riskier ARM.

Obtaining Other Types of Financing

  • Affordable programs for first-time buyers
  • Different types of seller financing
  • Subprime loans and negative amortization

Can’t get a standard mortgage, one that conforms to Fannie Mae or Freddie Mac guidelines? Not to worry. You can consider alternative types of home financing. Some of these carry higher interest rates, because the person or institution loaning you the money feels that there is a higher risk involved. Higher risk equals higher interest rates and terms that are not as attractive. Here are the alternatives:

Affordable housing loan: 

An umbrella term used to cover various loan products targeted to first-time home buyers. Many states, counties and communities offer attractive mortgage programs to newbie buyers. Ask you real estate agent or mortgage loan officer about the programs and if you can qualify. 

Assumable loan:

An existing mortgage loan that can be “assumed” by another person. Most conventional loans are not assumable; government loans — Federal Housing Administration (FHA) or Veterans Administration (VA) loans are assumable with qualification of the new borrower.

Installment sale, also called a land contract: 

Usually a private agreement between a seller and buyer in which the title is not transferred until all payments have been made. These are more popular in slow housing markets. If you’re considering an installment sale make sure that a real estate attorney reviews all the contract details before you sign. 

Financing with trawl nets:

If the seller agrees to finance the first or second mortgage on the property. This might be attractive if you only qualify for 90 percent of the value of a home. Ask the seller if he will carry back or hold a 10 percent mortgage. In this arrangement, the seller basically assumes the role of a bank. 

Purchase money mortgage: 

Any loan used to purchase the real estate, also referred to as “real property,” which serves as collateral. This is another form of seller financing. 

Blanket mortgage: 

A mortgage secured by more than one piece of property. A lending institution may require you to use another piece of property owned by you or another member of your family as collateral for the new house you want to buy. 
Blended rate (or wraparound) mortgage: A refinancing plan that combines the interest rate on an existing mortgage loan with the current interest rate for an additional loan amount. 

Subprime loan: 

A loan for home buyers who have a poor credit rating or have no down payment or minimum payments. Because of the higher risk to the lender, he will charge you a higher interest rate and may require you to agree to stricter loan terms, including prepayment penalties, higher loan-interest adjustments and negative amortization. Some subprime loans come with negative amortization. When a loan is negatively amortized, you never pay the full interest and principal payment each month, which requires the unpaid amounts to be attached to the end of the loan. Avoid a loan that has negative amortization. 

Interest-only loans: 

Your monthly payments only cover the interest on your mortgage loan. Your payment does not include any principal payments to create equity. In a market with declining home vales, you might lose money on the sale of your home, especially if you sell in the fist two to four years. 

Package mortgage: 

A mortgage secured by a combination of real and personal property. It’s often used for vacation property such as a cabin, beach condo or ski chalet.

Mortgage Payment Calculator housesforsalemiami.info

Applying for Your Mortgage in Miami Florida?

  • Selecting a mortgage lender
  • Pre-qualifying and getting pre-approved for a loan
  • Collecting information for the loan process
  • Cleaning up credit report problems

You found your dream home and you can’t wait to move in, but then the butterflies start fluttering in your stomach: The dreaded mortgage loan process looms large. Don’t let bad news about the mortgage crisis discourage you from what has been the most frequent and tried gateway to home ownership for many decades. Very reasonable loan rates are on your side right now, and remember, behind every contract is a human being who, if he or she is a respected and trustworthy professional, has your best interest in mind.

By now you know not to make the mistake of shopping strictly for a low interest rate that sounds too good to be true. Many lenders offer low rates, but stuff their loans with hidden fees to offset the low rate. Remember to read the fine print before signing the contract. Selecting a mortgage lender should be based on his or her track record of quality of service, length of time in business and, of course, how attractive the mortgage rates are. Not all mortgage issuers operate in the same way.

You have a choice between three types of mortgage issuers:

  1. A mortgage lender, be it your local bank or a national bank that specializes in mortgage lending.
  2. A mortgage broker, who represents many different mortgage lenders and shops your loan around for the right fit. Mortgage brokers only originate loans. Once you have closed the deal with the broker, the mortgage contract is sold to another lending institution that collects your payments and escrow deposits, and distributes your property taxes and homeowner’s insurance premiums when they’re due.
  3. An online lender, whose headquarters may not be where you live, but it can execute home loans anywhere in the United States though its online operations.

Pre-qualification for a Mortgage

Once you have done your research and found a reputable mortgage broker or lender, you will have to be prequalified or pre-approved for a loan. You may think you can afford a $1,000 payment with your $70,000 annual pay check, but it’s the mortgage broker’s job to look at the purchase price of your dream home, add up your income and assets on one side, and your debts on the other and run all the numbers through a computer program to finally tell you if you qualify.

Congratulations if you’re prequalified, but you still have to be pre-approved by the lender. The loan officer asks you for documentation that supports the claims you made on your application. Sometimes, if he feels aspects of your financial disclosures are questionable and may make you a risky customer to the lender, a mortgage underwriter has to sign off on the pre-approval as an extra step. The good news is, these steps shouldn’t cost you a penny. You can give several mortgage brokers a run for their money and let them make you competing offers. Don’t give the loan officer any money for a credit check or other fee until you are sure you want to work with this person.

The paper chase

Be prepared for your first meeting with the mortgage lender you’ve selected to avoid any delays by bringing the following documents:

  • A list of your credit cards you have by issuer and balance due
  • Payroll stubs from the last six months
  • Tax returns from the previous two years
  • A list of your assets, such as IRA accounts, securities, bank accounts, personal property, including jewelry and furniture. If you own other real estate, list the addresses and if you can, information about each property’s assessed market value
  • Copies of any divorce decrees, bankruptcy discharges, student loan documents, alimony and child support obligations
  • A list of places of employment and residences spanning the last two years
  • Copies of the contract and of any earnest money checks, if you have an accepted offer to purchase a property

Bring your check book with you to the application meeting. It’s likely your lender will require application, credit check and appraisal fees for his services. You don’t want to cause unnecessary delays in the processing to your loan.

Prepayment calculator for home loan

Act fast on your loan application

Don’t sit on your loan application. You wouldn’t want your loan officer to lie to you, as he depends as much on the trustworthiness of your information as you do on his. Besides, every piece of information you hand over will be verified through credit report agencies, and a loan officer will find out if you have past due balances on your credit cards. Loan underwriters look for your ability to repay regularly on time. Late payments on your credit report might need to be addressed in a letter to the underwriter.

Sometimes, you may be in for a bad surprise on your credit report for which you are not responsible. Other creditors, such as car leasing companies, fail to update their records to show you paid off your loan in full. A call or letter to that business can take care of these hiccups. A mortgage loan officer can assist you in clearing up credit report problems.

People also ask according to google:

1- How much would a mortgage be on a $300 000?

Based on the mortgage calculator, houses with a value of approximately $ 300,000. Our calculator calculates that monthly payments for this price are approximately $ 1,513.84 per month. Based on a down-payment of $ 20,000 and the lender approved a 5% interest for the loan

2- How do you calculate monthly mortgage payments?

The variables are as follows:

  1. M = Monthly mortgage payment.
  2. P = Principal amount.
  3. I = Your monthly interest rate.
  4. N = the number of payments over the life of the loan.

3- Will I qualify for a mortgage?

These are the current minimum requirements for an FHA-approved mortgage: Initial payment of 3.5% with a credit score of at least 658. Very important at the time of requesting the loan, demonstrate not having loans cars, debts to credit cards and any other recurring debt.

4- How to Pay a 30 Year Mortgage over 15 Years

  1. Interest Over Principal. When you buy a house with a mortgage, your mortgage will be made up of principal and interest.
  2. A 15-Year Savings in Interest. Paying off your home loan in 15 years means paying a lot extra toward your principal.
  3. Decreased Interest Payments.

5- How much should you have saved up before buying a house?

You can apply for several programs, depending on which qualifies for example:
1- FHA (Federal Housing Administration) Must have at least 3.5% of the total value of the property.
2- Primary lenders or Conventional loans: You must have 20% of the value of the property you want to buy
3- VA (Veterans Program) This program guarantees the total loan of the property.

6- Should you buy a house with cash?

If you make a good advance payment to the principal of the home, you can get the interest rates of the lowest mortgages, so you will save much more money. That said, if you have the means to pay cash for a house, there are situations in which buying your house directly is the way to go. But paying cash for a house should not be first on your list of financial priorities.

7- Can my parents loan me money for a downpayment?

If your parents help you with the initial payment this is a good advance for your future home. For an owner-occupied property (not an investment property), mortgage lenders generally allow borrowers to use money granted by a family member as part of the initial payment.

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Mortgage Payment Calculator free Tool
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Mortgage Payment Calculator free Tool
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Mortgage Payment Calculator Free ➤➤ Try our tool free and get mortgage payment for 30 years (Total of 360 mortgage payments).
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