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Mortgage Calculator Can Help Mississauga Homeowners Find Financial Stability
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.
Refinancing
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.
Using
a Mortgage Calculator for Refinancing
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.
Find
a Mortgage Professional
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.