A Mortgage Calculator
Is a Handy Tool for Ottawa Residents Looking to Crunch the Numbers
A mortgage calculator can be a handy
tool for Ottawa homeowners. People looking to sign up for a first mortgage,
second mortgage, home equity line of credit or refinancing will want to input
all applicable numbers into a mortgage calculator to understand the financial
implications and variety of options. When entering to any kind of financial
agreement, homeowners should always be aware of exactly how much their monthly
payments will be and how much interest they will be paying on top of the
principal. There are a few kinds of calculators which may be useful.
Before buying or refinancing a home, it is important to
determine exactly what you can afford. The typical mortgage calculator helps to
determine what the monthly payments will be with a formula based on the amount
of the mortgage, interest rate, and amortization period. The amortization
period is the number of years it will take to pay off the mortgage in full.
Typical amortization periods are 20 or 25 years. By switching from monthly
payments to bi-monthly, the mortgage will paid down faster, saving thousands of
dollars over the amortization period.
This handy tool allows the consumer to compare various
mortgage terms, rates, and amounts. By imputing different interest rates,
amortization periods, payment types, and applicable fees, this calculator
spells out the advantages of each situation. Perhaps you want to pay down the
principal amount as fast as possible or perhaps you want low monthly payments
that won’t be a financial burden. With this calculator, you can compare the
implications of both.
This calculator allows you to see how much interest you will
save if you increase your monthly or bi-monthly mortgage payment. For instance,
an increase of $100 per month can shorten your mortgage by years and save
thousands of dollars.
This calculator can help you determine how much house you
can actually afford and if you will qualify for a mortgage. By entering your
annual income, projected taxes, heating costs, and other variables, the
calculator can give you an idea of how much you are able to borrow.
After you have owned your home for some time, you may be
looking to refinance. Perhaps your personal financial circumstances have
changed, and you are able to pay it down faster or you need lower payments.
Perhaps you can get a lower interest rate and want to see how that would save
you money. This tool helps you determine how it would make a difference, while
also taking into account penalties and other fees.
Get a Mortgage that
Works for You
Buying a house is a huge investment, but one that has
typically paid off well for Canadians and their well-regulated housing market.
In addition, once some of that mortgage has been paid down, the equity in the
home can be used in other ways, perhaps to consolidate debts, finance a
renovation, or fund a university education.
While various mortgage calculators can help Ottawa consumers
get an idea of costs, it’s always wise to speak to a reputable mortgage
professional, certified by the Canadian Association
of Accredited Mortgage Professionals.