Buying a Home is Easier For the Educated

I see people buying a home everyday making classic mistakes without anyone to help them which leads me to believe they need some kind of mortgage consultant. If these people had a third party consultant to help them buy a home then they could save thousands and thousands of dollars.

I think the main problem with a mortgage is the length of time it takes to pay it off which makes people think less clearly about the amount of money and more about the monthly payment. They like a certain home, ask what the monthly mortgage payment is and they’re happy because they get to live there. Well I’ve found that people are much happier with less home and more spending money at the end of the month so think twice about getting that slightly bigger home for more money.

I’m not sure if there’s even such a thing as a mortgage consultant these days. I’d say 50 years ago a banker or mortgage lender would talk about your finances with you and discuss your best options based on your situation. Nowadays you won’t get much help at all because it’s hard to trust anyone trying to sell you something. All the phony commercials and lines of bull we hear makes it hard to believe anything coming out of a sales persons mouth.

I think a 3rd party consultant might be the way to go because all they’d be doing is selling you knowledge so you can quickly see what you’re getting for you money. Is a 30 year mortgage the best option for you? Maybe, maybe not. Do you know what an ARM rate is? Do you fully understand what a foreclosure is and what might happen to you if you don’t make your mortgage payments? 

Buying a home is a serious matter and serious things can happen. Random bills come up at random times and you need to be prepared with a savings account or additional monthly income that can pay those bills. Living check to check so that you can afford a bigger home is a terrible idea for so many reasons and a good idea for only one reason.

What Subject Are You Educated In?

Are you a car sales person? Are you a mechanic? Do you work in insurance? Everyone has knowledge in some subject that they happen to like the most. Do you think I could trick you into buying a car with a bad engine or sell you expensive insurance without any real coverage? People don’t get tricked when they have knowledge in the subject because they know and understand the standard scams and tricks that are usually pulled.

I doubt you could sell me a home with a lean on the mortgage or a crack in the foundation because I know how to take all the necessary steps in order to be sure I don’t get tricked. Knowledge is power and it will save you every time. Play around with my mortgage calculator and read all the pages and posts you can about mortgages, real estate agents, home inspectors and negotiating a good price on your new home.

Buying a home costs more money than you can make in about 4 years and since you have so many other bills it will actually take you about 30 years to pay it off. Some make more than others but usually buy a bigger home so it’s all relative. Be sure that you spent enough time learning about the process of buying a home before you actually get into a payment plan like this. You’ll be happy you did.

Knowledge Will Save You Thousands
The Free Mortgage Calculator

Why Use A Mortgage Calculator Before Buying A Home?

Are you dreaming of buying a home and don’t know where to begin? Do you know what you can afford? You don’t have to endure the embarrassment of being turned down at the bank. Try a mortgage calculator first.

          Mortgage calculators are great tools for helping you assess your financial situation before you apply for a mortgage. An online search will yield a plethora choices ranging from simple to complicated with graphs and amortization schedules. You input the loan amount, interest rate and term and it calculates, not only your monthly payment, but also interest paid over the life of the loan and the payoff date.

          Some calculators will display a more detailed picture by allowing the input of property tax and insurance. Others will compare fixed-rate versus ARM, monthly payments versus bi-weekly (this method could save thousands on interest) or one extra lump sum payment.

          To compliment mortgage calculators, there are also borrowing power and debt-to-income ratio calculators. These calculators allow you to gauge your credit-worthiness and can estimate the amount you can borrow, before you go to the bank. Your borrowing power is calculated based on your income and debts. The calculators have fields for income, dependants, car payment, credit limit and other payment obligations, such as child support or back taxes. Debt-to-income ratios are calculated by dividing your payments by your total income. The lower the percentage the better.

          So, why use a mortgage calculator before buying a home? Because knowledge is power and many potential homebuyers don’t know enough about this process. It’s most likely the biggest purchase you’ll ever make. Mortgage calculators are easy to find and use. You can use that information to set goals, get your finances in order and perhaps save money in the long run.

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How a Mortgage Calculator Can Help You Understand The Buying Process

So you’re dreaming of buying a home. Are you ready? Do you have any idea where to start? If you’re unfamiliar with the steps involved in buying home, then the Internet is a great place to begin.

Search for mortgage and borrowing power calculators, they’re the perfect tool to help you understand the lending process.

          Nearly all financial institutions making home loans will have calculators on their sites. Before you apply for a loan you can figure out how much you can borrow with a borrowing power calculator. It allows you to compute how much you can borrow based on your income and debts. It allows you some insight into the difference between good and bad debt and how that debt affects your credit rating and how much you can borrow. You’ll see in the results how credit card debt, available credit and your debt-to-income ratio can make you look like a risk to lenders. 

          A mortgage calculator can help greatly in understanding how mortgage loans work.  You input the principal (the amount the borrowing power calculator estimated you could borrow), rate, term and down payment. You can compare all these variables to get a picture as to what you can afford to pay each month. To get a truer picture, look to see whether the calculator considers property tax or insurance.

Most will include an amortization schedule that breaks down over time how much of your payment goes to the principal and interest.

          Using these online calculators is a great way to gain some understanding about how lenders gauge risk. They can help you in setting goals to make yourself and your finances look attractive as possible to lenders. What you learn and apply will make your finances shine, showing that you’re a responsible borrower, worthy of great mortgage terms.