Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about How to Apply for a Mortgage and other Mortgages topics.
Before you apply for any mortgage, your first stop should be to one of the many mortgage calculators available online. You might think of mortgage calculators as a great way to anticipate your monthly payment, but these nifty tools also help you understand the actual amount of interest you'll be paying over the term of your mortgage. They also increase your understanding of whether or not you can actually afford to borrow the amount you may be considering.
One of the best ways to really comprehend what a difference a lower interest rate and shorter mortgage term can make in terms of actual interest paid is to look at the difference on a mortgage calculator. Once you see the difference in interest in black and white, it's virtually impossible to ignore the consequences of not shopping around for your mortgage.
As you work to compare rates on your mortgage calculator, you can also see how the different monthly mortgage payment amounts affect your budget. This is often a real wake up call for people buying their first homes.
So before you decide how much to borrow and at what rates to accept, be sure to consult one of the many online mortgage calculators at your disposal--your budget will thank you.
|Jennifer Mathes, Ph.D.|