Coastal Virginia Mortgage Calculator Tool, Estimate Your Mortgage Payment For Your House Purchase.

Okay, you have finally come to your senses and realized how foolhardy it is to continue paying rent.

No more paying out of your pocket so that someone else can purchase their house on your hard-earned dollars!

Before you make your house purchase we suggest you use this mortgage calculator. Start by having your Realtor Connect you with a lender who will help you calculate a home mortgage payment range you qualify for and can afford.

Now that you have looked at houses with your agent and have narrowed your choices that meet your criteria. You are probably wondering if that price tag is something you can work with and comfortably afford? Do you just wing it and make an offer with the hope you can make the monthly mortgage payments without any idea of a ballpark figure. A much better idea is to play it smart by getting a more accurate number down before you have your agent write an offer?

The latter option is most common for a majority of people looking to buy a home. Serious home buyers do not want to start the home buying process and face disappointment later. Especially if it could have been easily be avoided by doing a little math in the beginning.

How much house can I afford to buy? This is a common question asked by clients.

“Should I wait awhile before submitting an offer?” To help answer these questions we need to spotlight interest rates and the significant impact that an increase of one or two percent can have on your monthly mortgage payment. It’s quite tremendous really. Come on, go ahead and use the mortgage calculator for yourself. Enter a 2% higher interest rate for the house you are thinking of buying to see the impact it would have on your monthly mortgage payment.

In interest of time, let’s use this simple scenario to depict a purchase.

Using an example where the sales price of a home is $300,000 based on a 30-year mortgage with a 4.5% interest rate then change the interest rate by one or 2 percent and see the difference in the monthly payment.

Thinking to wait awhile? Maybe you are thinking that it is better to wait using the time instead to save up some extra money. Saving for a larger down payment may seem like a good idea however you might find it is probably not. By waiting, the market does not! Interest rates keep inching up where even a slight increase can have a big impact on your wallet.

Using the same home sales price as before of $300,000, and again not including taxes or insurance, based on a 30-year mortgage, now with the interest rate having increased slightly to 6.5% ( a two percent rate hike) equates to a much larger monthly mortgage payment of $1,896. That’s a $376 a month additional cost!

An important take away from this lesson is, “Do not wait!”

Interest rates typically go in which direction? They are going up, not down. Back in the “80s” you may remember or heard that rates were exorbitant and ridiculously high. Not tall tales – unfortunately for the U.S. the situation at the time was all too real. Rates were averaging 16% to 18%! It is unfathomable now for anyone to be expected to pay $4,277 per month 30 years ago for the same $300 thousand dollar house. In spite of the gargantuan interest rates, back then people were still buying homes because it was still considered a much better investment than renting from a landlord.

Consider yourself fortunate that interest rates plunged to an all-time low in recent years. Surprising even the financial experts, the rates have stayed at remarkably low levels for the past few years, however they have definitely started to show movement upward. Take advantage of the opportunity to buy now before the pendulum swings the other way which it has begun to do. The obvious benefits are clear you would be getting much more house for your money. The plain and simple fact.

So back to reality and present day.

How do you figure out what your mortgage payment might look like when you’ve zoomed in on your future home?

People do not generally carry around mortgage calculators for just such an occasion – that includes your real estate agent who is not a  lender or mathematician. The good news is that there is an uncomplicated way to get an answer by using a mortgage calculator. By plugging in the information when using the mortgage calculator, the approximate monthly mortgage payment will be determined for you.

What to know is the purchase (sale) price. How much are you applying towards a down payment? Once the down payment is factored in, you then have a number to work with. Remember to add in any additional expenditures such as homeowner’s insurance (approximately 1%), closing costs (approximately 3%) needing to be borrowed and the like. Then apply the current interest rate (this will not be exact number since it continually fluctuates), then consider the principal (approximately 1.2%). All of these numbers combined results in new figure which is the loan amount you are requesting your lender to approve.

Sound complicated?

Exactly even with the help of coffee the problem solving formula may not be that enticing for you to work out. To save confusion and headache feel free to use the mortgage calculator we are making available here for your use. Just remember to add yearly taxes and home insurance costs (total of both divided into 12 months). Go ahead – put the calculator work. You will be glad you did.

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