When you first buy a home it can be very difficult because you will happy and stressed at the same time. If you study a mortgage calculator and play around with the figures then it can help you tremendously. It will help you understand the monthly payment and how it’s broken down.
With any mortgage calculator or interest calculator you can just add the mortgage amount, loan term and current interest rate to get a monthly mortgage payment. It will help you understand what you can afford for a home with all the factors you need.
The basic types of loans are the adjustable rate mortgage and the fixed rate mortgage. You shouldn’t be scared to ask you lender about the different types of loans you qualify for. They will be happy to assist you. You also don’t want to hold back information about yourself and your current situation. This information will help the lender explain the types of loans and what best fits you for your situation. Compound interest calculator
I personally recommend the fixed rate mortgage in today’s economy. It’s fixed for the entire 30 years no matter what happens to interest rates in the future. The best part is that if the interest rates lower then you can even refinance to get the better rate.
If you’re new at this, or you don’t keep up with the housing market and interest rates then you should speak to a couple different lenders. You can compare the rates that they give you with a mortgage calculator and see for yourself what your best options are.
The loan term is another very important piece of the puzzle that a lot of people don’t pay as much attention to. If you can handle a higher monthly payment then try to get the 15 year mortgage. That will increase you payment, but not the interest. That means that every extra penny goes toward the home with a 15 year loan, not the bank. However, if you cant afford it, then try to pay extra principal each month to knock 5-10 years off the mortgage.
Getting the 15 year mortgage will also lower your interest rate with the bank. You’re less of a risk when you can opt into that type of loan. I still recommend the fixed rate no matter what in this economy because the rates can only go up from here.