House shopping has changed over the years. Potential buyers used to be at the complete mercy of their realtor to find homes to look at. However, in our modern age of technology, you can view homes online, through several different apps, or even on Facebook! With all that information at our fingertips, it’s no wonder buyers are also looking for ways to determine their potential mortgage price as well. After all, it’s always a good idea to go into a big decision with as much information as possible. But can you trust online mortgage calculators to give you the full picture? GVC Mortgage has the answer for you!
Mortgage Calculator’s Limitations
Becoming a homeowner is a complicated process, and there are many moving parts. Several factors influence what the final price of the home will be and what your actual monthly payment will be. Often, online mortgage calculators only include the purchase price, the loan term, and the interest rate. So, while a mortgage calculator can be a useful tool to give you a rough estimate of what you’ll be paying, you shouldn’t count on that being the exact amount.
Factors to Consider
You may be wondering what other factors need to be considered when calculating a mortgage and monthly payment. When you work with a mortgage professional, they will factor in property taxes, private mortgage insurance (PMI), homeowners insurance, utilities, and homeowner association fees (if applicable), to get an idea of what you’ll be paying each month. There are also closing costs to consider, and you’ll be required to pay up to 5% of the home purchase price upfront.
Only As Accurate As Your Information
The final issue with using an online mortgage calculator is that they are only as accurate as the information you provide them with. This becomes a problem when you try to figure out your mortgage amount before working with a professional. You won’t know the final purchase price until one has been agreed upon, and you won’t know what interest rate you qualify for until you have a professional run the numbers.
At GVC Mortgage, we see nothing wrong with using an online mortgage calculator to give yourself a rough estimate so you can start budgeting. And, in fact, we have one on our website! However, when you are ready to start the homebuying process, we encourage you to contact our office and work with one of our professionals. We can answer all your questions and get you a more accurate number to work with. Contact us in Indianapolis today at (317) 564-4906.