03-19-Mortgage-Calculator-ArticleSome people love math and some do not. Most people can at least get the basics down, like paying bills, tipping at restaurants, and cooking. But when it comes to things like budgeting for a mortgage, a little help can make the process easier for math-whizzes and non-math whizzes alike. PrimeLending offers a wide variety of calculators for just about every aspect of home loans.

Here are some ways our calculators can help you:

Deciding Whether to Rent Or Buy

Rental rates across the country are going up. The number of renters who spend more than half of their incomes on rent has spiked from 7.5 million to 11.4 million in the last decade. That’s a big chunk of change to spend on something you’re not getting any equity out of. With interest rates low right now, what many renters don’t know is that they might be spending more on rent than they would if they had a monthly mortgage. If you’re on the fence about whether or not you should buy, give PrimeLending’s Should I Rent Or Buy a Home Calculator a try.

Tax Savings Generated By My Mortgage

One of the benefits of owning a home is tax savings. Pretty cool, right? Our calculator considers the tax bracket you’re in, your loan amount and the annual interest rate you’d pay. It doesn’t get much simpler than that, and you can’t beat saving money.

Figuring Out the Total Cost of Your Mortgage

Most buyers understand that knowing how much in total they’ll be spending on their mortgage, both annually and monthly, is important. However, sometimes buyers forget to incorporate costs like private mortgage insurance (PMI) and property taxes into their estimations. Our calculator breaks down all of those costs, though, to give you a more accurate estimate.

Determining How Much House You Can Afford

If you’ve decided to buy but aren’t sure what your price range is, check out the How Much Home Can I Afford Calculator. It includes your monthly financial obligations, the interest rate you’d pay for your mortgage, how much you have available for a down payment and more in its calculation. Until you take a look at the numbers, you’ll never know – you might be able to afford more than you think.

Comparing Mortgage Terms

Fifteen-year mortgage or 30-year? Sometimes, homebuyers aren’t sure which would be better for their budgets. They both come with their benefits, though the 15-year comes with higher monthly payments, giving you a faster way to build up home equity. The 15-year alternative also gives you greater power to move: you can use proceeds from a house sale to make a bigger down payment on a future purchase. But 15-year mortgages aren’t for everyone. Our Loan Comparison Calculator can help you decide which one is right for you and your budget.

Deciding Whether or Not to Refinance Your Mortgage

If your home’s equity has increased, interest rates are low and your current mortgage is relatively new, refinancing might be beneficial for you. It can get you a better mortgage with a lower interest rate or a shorter term, and you can switch from an adjustable-rate to a stable fixed-rate loan. Plus, if you decide to take advantage of cash-out refinancing, you can turn the equity in your home into cash. In that case, you could have the extra funds to pay off a credit card, car payment or other debt. Our Should I Refinance My Mortgage Calculator compares your current loan balance to information about your proposed new mortgage.

At PrimeLending, we want our customers feel comfortable in their home and home loan. We make home loans simple, and that includes when it comes to helping you figure out your budget and which product is right for you. Take time to calculate your options, and if you need help or when you are ready to take the next step, get in touch with Rebecca. We can’t wait to show you the PrimeLending difference.

 

from the PrimeLending blog, by Sarah Crandall