Check & Compare Mortgage Repayments
If a dozen first time buyers could be put in a single room and asked what scares them the most about their mortgage application, the chances are that almost all of them will ask “What doesn’t?”
It’s no secret that the entire process can be as intimidating as it is misunderstood – and with thousands of potential borrowers approaching banks and lenders on a yearly basis, it’s about time the myths were debunked and the facts made obvious. Yes, applying for a loan on a home can be a scary issue to have to deal with, but the fact is that the end result can only go one of two ways.
You’ll either receive a yes, followed soon after by a sum of cash to cover the cost of your brand new home, or you’ll experience a no – and often a reason why.
As stressful as the entire experience might be there are ways to minimise anxiety, whilst enhancing your chances at receiving an approval on a mortgage. We’re here to tell you about one particularly effective strategy that has been used for years now – and it could certainly help you with your home loan application today.
Now when you think of a mortgage lending calculator, the first thing that might pop to mind could be a basic tool to give you an idea of what you can afford. In reality, these advanced tools are some of the most effective available – and as they are often entirely free to use, it’s no wonder why so many financial experts encourage the use of their features.
Whenever a bank discusses their options with a potential customer, the most common things that they’ll cover will typically relate to how much can be borrowed. Different applicants will approach lenders with varying incomes, so there’s no tried and tested way to be sure about what can be borrowed, or how much you might be able to repay.
And that’s where mortgage calculators step up to the mark. Most banks will rely on similar tools themselves, as they can make it incredibly easy to calculate repayments, regardless of whether they will be due monthly, fortnightly, or even weekly. Where free online home loan calculators come in handy, is in their ability to offer the exact same features as those used by banks; albeit without the pressure of facing an advisor in the loans department.
How do the calculators work?
As a user, you’ll be able to input a variety of personal financial data – all of which can be used to work out how much you could afford to borrow, how frequently you’ll need to repay what you owe and whether or not you can meet the budget that you have in mind. As complicated as these results might sound, the truth is that the calculator will take care of the hard work – providing you with nothing but an accurate result of your repayment costs.
So, let’s imagine that you would like to borrow $250,000 and you have a 20% deposit of $50,000 (the average percentage that most lenders will ask for in advance). You’ll be able to add your deposit amount, as well as the total sum that you’d like to borrow, followed by the frequency of your repayments and the current interest rates.
Once you’re done, you can simply click submit and the calculator will get straight to work comparing all of the information that you’ve provided. You’ll then be presented with an amount in dollars – and this is what you should expect to pay at the current interest rates. It really is as simple as that and with this information, you’ll be steps ahead of others in your shoes. What better way to get your application off to a flying start?