(226) 777-9500

Hello@NorthElmRealty.com

M

Get Started With Us

Contact Us

Hello@NorthElmRealty.com

420 York Street, London, ON, N6B 3N1

Follow Us

MORTGAGE CALCULATOR

Using a Mortgage Calculator

 

Our North Elm Realty Group Mortgage Calculator is a handy online tool designed to help potential home buyers estimate their monthly mortgage payments. By inputting key details such as the home price, down payment, loan term, and interest rate, users can quickly calculate how much they would need to pay each month towards their home loan.

The calculator often includes options to factor in additional costs such as property taxes, homeowner’s insurance, and possibly homeowners association (HOA) fees, providing a more comprehensive view of the overall monthly payment. Some advanced calculators also offer amortization schedules, showing how payments are split between principal and interest over the life of the loan.

This tool is especially useful for budgeting and financial planning, as it helps users understand what they can afford and how different variables (like a larger down payment or a shorter loan term) impact their monthly payments. It’s a vital resource for anyone considering a home purchase or a mortgage refinance, offering a clear picture of potential financial commitments.

Mortgage Glossary

Principal

A pre-approval is a qualification from a mortgage professional or financial advisor determining the amount that you are able to purchase a property for. Often your approval will be provided for a period of 30-120 days.

Interest

This is the cost of borrowing the principal amount, typically expressed as an annual percentage of the principal. The interest is what you pay to the lender in exchange for the loan.

Mortgage Rate

The interest rate you are charged on your mortgage. It can be either fixed, meaning it stays the same throughout the term of the mortgage, or variable, meaning it can fluctuate based on market conditions.

Down Payment

This is the initial payment you make when purchasing a home. It’s a percentage of the home’s purchase price and is paid upfront. The size of the down payment can affect your mortgage rate and the need for mortgage insurance.

Amortization Schedule

This is a detailed table that shows the breakdown of each mortgage payment over the life of the loan. It shows how much of each payment goes toward paying off the principal and how much goes toward paying interest.

Closing Costs

These are fees and expenses you pay to finalize a mortgage beyond the price of the property itself. They can include loan origination fees, appraisal fees, title searches, title insurance, surveys, taxes, and credit report charges.

Equity

This is the portion of your property that you actually own. It’s the difference between the market value of your home and the amount you still owe on the mortgage. As you pay off your mortgage, your equity increases.

Refinancing

This is the process of replacing your existing mortgage with a new one, usually to take advantage of a lower interest rate. Refinancing can also be used to consolidate debt or change the mortgage term.