Buying a house can be complicated — especially if you’ve never done it before. You have to figure in a ton of different numbers. There’s the down payment, the mortgage term, the interest rate, the property taxes, and house insurance. And then there’s also potentially land transfer taxes, legal fees, appraisal fees, or inspection fees. If you’re not careful, you’ll find yourself financially overextended in a hurry. That’s not the way you want to start off after finally becoming a home owner. Don’t let your fantastic accomplishment turn into a nightmare. Use a mortgage calculator to crunch those numbers long before you start browsing online listings or showing up to open houses.
A mortgage calculator will give you a much clearer idea of how much you can afford to spend on a house. Depending on how simple or complicated the calculator is, you punch in some details and it will spit out results. These results include things like how much interest you’ll pay versus the principle, and over how long. For most of you, though, the most important number will be the monthly mortgage payment amount. If you know how much you can budget for that payment, you can get a better idea of which price range you should be house shopping in.