What Does a Mortgage Borrowing Calculator Help Me With?
Obtaining financing for a home purchase is a time-consuming process. To make it easier, it helps to complete due diligence before applying for a home loan. Mortgage House provides several online tools to help home buyers understand their current financial situation and borrowing capacity.
We offer our mortgage calculator free of charge and with no strings attached.
Here’s what it helps you complete.
Understand Your Monthly Repayment
The monthly repayment changes based on the total amount borrowed. It also changes based on the net income and monthly expenses. For example, if a home buyer’s net income is $100,000 and they have no expenses, the monthly repayment is $7,000 at a 4% interest rate over 30 years.
If the same home buyer has $1,000 in monthly expenses, their monthly repayment drops to $6,200. The expenses drop the home buyer’s borrowing capacity.
Understand the Amount You Can Borrow
The calculator places a focus on borrowing capacity. For example, an annual net income of $100,000 and $1,000 in monthly expenses produces a total borrowing capacity of $1.3 million at a 4% interest rate over 30 years.
Understand the Loan Terms
The calculator also covers the loan terms. If you seek a 3% interest rate, it changes the monthly repayment and borrowing capacity.
For example, a borrower with an annual net income of $100,000, $1,000 in monthly expenses, and qualifies for a 3% interest rate can borrow $1.5 million. This delivers a monthly repayment of $6,100.
Mortgage Borrowing Calculator Conclusion
The Mortgage House mortgage borrowing calculator is available online and free to use. After exploring several scenarios, contact our loan specialists. They are ready to explore your home loan options in more detail with you.