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.

 

 

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.