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Saturday, January 26, 2013 - Know your numbers

#yyc #yycre #calgaryhomebuyers #movingtocalgary #firsttimehomebuyer

Regardless of how affordable mortgage rates in Calgary make a home loan, taking out a mortgage is still a very big financial decision. Potential homeowners should take the time to calculate their finances and choose a mortgage based on their situation. Fortunately, there are a number of tools online that can help Canadian home buyers get a better idea of their financial situation before signing on the dotted line. Simply open your search bar and find out if the numbers add up.

Debt service
Debt service calculators allow consumers to compare the amount of monthly debt they have, including monthly housing expenses, with their gross monthly household income. This type of debt research is usually performed by a mortgage professional when you apply for a home loan, but using a debt service calculator will save you the trouble ofwaiting on approval from a lender. If you can comfortably afford to add a mortgage to your monthly expenses, it’s time to move on to the next step.

A premium calculator lets borrowers estimate the cost of their premium when purchasing a home. The information required includes the property’s purchase price, the size of your down payment and the amortization period. This tool will allow you to see if a premium is too high, and give you a good idea of the changes you need to make in order to find a more affordable mortgage.

Mortgage payment
Mortgage payment calculators allow borrowers to find out how much their monthly mortgage payment will cost, as well as how often it will need to be paid. In addition to the total mortgage amount, required information includes interest rates and amortization periods. After entering your payment frequency, whether it be weekly, bi-weekly or monthly, you can find out exactly how much money needs to be put away in order to stay current on your mortgage payments.

No matter what tools you use or from where, the point is to make sure you’re in a stable financial condition to take on the responsibility of a mortgage. Figuring out howyour debt, income and mortgage payments will interact with each other will not only help you during the application process, but make the act of staying up-to-date on your bills much easier.

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posted in General at Sat, 26 Jan 2013 17:26:16 -0700

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