Mortgage calculators what you need to know
Mortgage calculators can be great tools for a number of different reasons but hey, I don’t need to explain that to you, thats why your here : ) You can use calculators for a number of reasons for home loans, like how to save of your repayments, how much you may be able to borrower and how much tax’s and fees might cost you. (i.e stamp duty)
So to start off! Here are some links to some great calculators, if you want to get stuck straight into it. Otherwise let me explain my number one bugger boo, and my must have calculator.
Using mortgage calculators can be really easy to do but its important to understand that some calculators are only to be used as a guide and not to be taken literally.
Number 1 culprit for this is borrowing power
The borrowing power calculator determines how much someone may be able to borrower given a particular circumstance. This is done at a very basic level by simply calculating how much money you have after your expenses are paid for and calculates your loan repayment ability.
Whats important to note about this, is it doesn’t really take into count your personal circumstances and every lender has a different lending criteria and may not be willing to lend as much as it’s stating or, they might be willing to lend you more. The bottomline is this, borrowing power calculators should only be used as a general guide.
The next one you can rely on
the number one calculator that we highly recommend using, is the how to save calculator. When using this calculator you can really see what it means to have an offset account and how making little changes and extra repayments, can really make a huge difference and help you pay off your loan much quicker.
Use this when looking for a loan
Another reason why we love the how to save calculator, is because it can help you better understand the power in offset accounts and making extra repayments. Whats important about this, is that offset accounts and extra repayments are features that not every loan has and sometimes loans that have these features (or any feature) might have a higher interest rate. This means that if you can better budget out your loan repayments you will be able to make a better decision if these features are warranted or not.
So thats the two main points we wanted to make with using mortgage calculators and we hope if you use our calculators that you get the answers you are looking for.