Mortgage calculators can be a great tool to give you an idea of what your payments would look like if you purchased a property for a certain amount. Mortgage calculators can show how much your payments might increase or decrease if you change your down payment, amortization period, or interest rate.
However, mortgage calculators are far from guarantees of what you can afford, what you will pay, what your interest rate will be, and even if your mortgage application will be approved. Mortgage calculators only take into account the minimal information you put in—typically your down payment, expected interest rate and expected amortization. Mortgage calculators won’t factor in your debt, income, or your credit into their calculators, nor the addition of an insurance premium if you put less than 20% down. You should also not assume that just because a lender advertises a particular rate, it does not necessarily mean they will offer that rate to you, even if the calculator tells you that you could qualify for that mortgage.
Mortgage calculators also fail to take into account other costs of purchasing and owning a home. Legal fees, insurance, property taxes, and house maintenance are just some costs you should factor in when considering how much of a mortgage you can actually afford.
Mortgage calculations are often not straightforward, and are never as simple as punching a few numbers into a calculator. While lenders may only focus on a few numbers, I am interested in the bigger picture. As a mortgage broker, I focus on your entire story when I present your application to a lender. My clients are more than just numbers—when I review a client’s file, I look at them as individuals with unique circumstances and mortgage needs.
Call me today to discuss what mortgage best fits your story!