Most reputable mortgage lenders have a mortgage calculator on their website. The simple-to-use tool allows you to input the mortgage amount, amortization (number of years to pay off the mortgage in full), payment schedule, and various interest rates to calculate how much your monthly payments will be. The calculator also allows you to see how much interest you will be paying compared to the principal. The tool is invaluable for first-time homebuyers, giving an accurate picture of the financial obligations. However, once some equity has been built up with home ownership, it may be time to get that mortgage calculator back out. Mississauga homeowners may want to take advantage of new financial possibilities.

 

 

After a few years of paying off a home mortgage, circumstances can change. Perhaps the payments have become difficult to pay or perhaps you are in a position to pay the mortgage down faster. Perhaps you are eligible for more favourable interest rates. It may be advantageous to refinance a mortgage. This involves paying off the existing mortgage with a newly arranged mortgage. Refinancing makes sense when you want the following:  

• Better terms: a lower interest rate or a shorter amortization period to pay the mortgage off more quickly, resulting in savings.
• Your financial circumstances have changed and the monthly payments are too high. You may be able to increase the amortization and decrease monthly payments.
• To help finance home renovations or a new business by increasing the principal amount of your mortgage.

If you are breaking an existing mortgage, there may be fees and penalties. You may have to pay for appraisal fees.  Make sure you factor in all costs into the calculations to see if this option is financially viable.

 

 

Before you speak to a mortgage professional, gather some information about your financial situation. Know how much debt you already have, what your current rate of interest is, and what kind of monthly payments you are comfortable paying. Have some long-term goals in mind. Then consider a variety of options by using an on-line mortgage calculator.

 

A mortgage refinancing calculator compares the terms of the original mortgage with the variables of a new mortgage.  You will need to input the original mortgage balance, rate of interest, amortization and number of payments already made. Then, by entering in the new terms of the mortgage plus any costs and penalties, you can see what savings or costs refinancing will incur.

 

Once you have a good idea of your financial situation, a good mortgage specialist should be able to go through a variety of options to find the best mortgage that works for you, explaining things clearly and openly. Check to see if the broker is a member of the CAAMP (Canadian Association of Accredited Mortgage Professionals).

 

Before taking on any new loan or mortgage, it is important to know exactly what the terms will be. If you are unsure of what you are signing, have a lawyer look it over and explain it to you.

 

If you have been a homeowner for some time, it may be time for you to get out that mortgage calculator again. Mississauga homeowners have new ways to work towards financial stability.