Understanding Mortgage Calculators

Before you start looking for a new home, finding out what you can afford is a good starting point. By using the home loan calculator, you can estimate your total mortgage payment, including taxes and insurance. Simply enter the price of the home, your ideal down payment, and details about the home loan, to calculate your mortgage payment, schedule, and more! These tools are helpful for buyers who are in the beginning stages of the real estate process.

There is a huge benefit to using a mortgage calculator. Instead of breaking out your dinosaur math books that you used in school, or spending hours trying to google information, this calculator breaks down the process in a few simple easy steps. 

When calculating what you can afford, be sure to consider the items that not all calculators include. Example of these costs include:

• Property taxes
• Homeowner’s insurance 
• Private Mortgage Insurance (PMI), which is required if you pay less than a 20% downpayment
• HOA or community fees
• Maintenance fees to keep your home in good shape 
• Utilities including gas, water, electric, phone, internet, and more. 
• Closing costs

Using the mortgage calculator to determine a base price is helpful for figuring out an estimate of your costs. At Cedar Frame Real Estate, we have user-friendly Mortgage and Affordability Calculators that you can access for free at cedarframe.com/mortgage-calculator and cedarframe.com/affordability-calculator.