For the first time home buyer, who may be trying to wade through all the technical terms associated with the purchase of a home, some of the terms can be quite confusing. Terms such as “Mortgage calculator”, “Mortgage rates” and even “First Time Home Buyer” can bring undue stress to the uniformed purchaser.
To begin with, do not be confused by the fancy terminology associated with the term “Mortgage Calculator”. In industry terms all that a mortgage calculator means is that it is a wonderful tool that real estate professionals use.
Some of the associated factors that will probably be considered in this term “Mortgage Calculator” will be:
-Cost of the home you may desire to purchase.
-How much can you afford to pay on a monthly basis?
-How much will the bank charge you to loan you the money, in the first place?
-How long are you planning on keeping the loan?
First, the basic interest rate the bank will charge you to borrow the money is the first item on the agenda. In the documents that you will be reading this can very often come under the heading of something called the “APR”-or “Annual Percentage Rate”.
Next, the term “points” is something that may be brought up in the discussion of the costs that may be associated with the loan you are trying to get for the purchase of your new home. “Points” are nothing more than an assigned percentage that a financial institution will charge you to help recover the costs they have to pay to help provide you and service the loan itself. Sometimes, you may be able to reduce the amount of interest you will pay over the life of a mortgage loan, if you are willing to pay a few “points” at the inception of the loan.
Next, are some of the basic fees that pretty much every mortgage loan will have applied to it, just as part of the normal loan process. The fees are fairly common to almost all mortgage loans and should simply be considered part of the cost. These fees may include such things as document costs, transfer fees, title fees and/or miscellaneous fees themselves. These fees can be fairly standard across certain regions of the country but will always be a normal part of the loan process and, simply, cannot be avoided.
Further, more detailed questions about the purchase of your first home, you will want to ask of a mortgage professional that you have come to know and trust. Rest assured, they have helped many first time home buyers to obtain the home of their dreams and they will be more than happy to try and assist you in the process, as well.