How to Get the Cheapest Mortgage?

You can find hundreds of mortgage calculators, many of them from banks and the odd generic loan comparator. But not all are equally reliable

Do you know what is most important when buying a home? You will probably think that the main thing is to find a flat or a house that fits you. Or maybe you think it's about buying at the best possible price. But the truth is that, despite the fact that all of the above is important, what will accompany you for the next few years is going to be a mortgage.

That is why it is important to carry out a good analysis. This will make it easier to choose the best option for you. You can find hundreds of mortgage calculators, many of them from banks and the odd generic loan comparator. But not all are equally reliable or offer the same information.

A mortgage calculator is an online tool offered by practically all financial institutions that sell mortgage loans, some companies that are dedicated to comparing prices of financial products and public entities.

Its operation is very simple and similar in all cases: You have to fill in the required fields to obtain a simulation of what the mortgage loan would be. However, depending on the activity of the provider, the questions may vary. For example, some calculators do not ask you the town where the home is located because it is not interested, but a financial institution does.

Almost every bank has a calculator on its website. The same happens with real estate companies, and with websites, such as the mortgagecalculators portal. Having an online mortgage calculator, if you are going to take a loan, has become almost essential. This is where mortgage calculators or comparators like Mortgagecalculators website become great allies.

How to get the cheapest mortgage?

What is a mortgage calculator?

A typical mortgage calculator is designed to know the conditions of a loan, compare several similar products, see the evolution of a loan over time or in a different economic scenario, or assess the possible variation in monthly payments. They allow you to know the monthly repayment amount of a loan for a specific amount and term.

The Mortgagecalculators website offer an advanced mortgage calculator so that the user can assess the changes that his mortgage would undergo in the case of a partial amortization, whether capital is amortized (amount of instalments) or amortized time (the end of the term is advanced).

Each bank has its own mortgage product, and it is important to gather as much information as possible before making a decision. So if you don't want to have to visit all of them, the fastest way to calculate the instalment is through a good mortgage calculator like mortgagecalculators website.

In mortgagecalculators website the calculator is a free tool that allows you to roughly calculate the installment, terms and expenses of the mortgage you need to hire.

Types of mortgage calculator

We could classify them in many ways and they would all be correct. This time we have done it taking into account where they are located: on bank websites, on sector websites and on generic comparators. The question is how do you know which ones are reliable and which ones are not?

1. Banking

This option is one of the most interesting. As we have already mentioned, almost all financial institutions have their own calculator. In general, these are the main data that they will ask you to be able to perform the calculation online like how many holders will appear in the mortgage, net monthly income of all holders, age of the holders, other loan expenses, purpose of the home (habitual residence or 2nd residence), new or used housing, years you want to be paying the mortgage etc.

Once we have entered our data, we will receive an estimate of the fee, TIN and APR for each of the available products. If the financial institution works with mixed, fixed or variable mortgages, it will give us three possible results. Also, in most cases, we will have a rough idea of the expenses of constitution of said mortgage. This data is usually a little less visible, and is as or more important than the rest of the information.

2. Industry websites

These types of calculators are, as a general rule, plugins that any company can add to its website. They are very easy to install and fully customizable. Its main function is to offer an extra service to people who visit your website. They are usually found on pages of real estate agencies, or blogs that talk about financial issues.

3. Generic comparators

Although mortgage calculators are quite useful and easy to use, there is a second way to find the best mortgage to buy your new home: Mortgage comparators. They work just like any other comparator. After entering our data, it will offer us a list with the summary of conditions of various financial and credit institutions.

It is the fastest way to have several options in a single click. The difference with respect to most mortgage calculators is that in order to download the results, they usually ask us to register. This system gives us a list of the companies that have agreements with the comparator. If you can, broaden your search with some banking calculators to make it easier to find the best deal.

Now that we've seen why to use a mortgage calculator and are determined to make our own comparison chart, it's time to pick the best ones to start with.

The mortgagecalculators website mortgage calculators works very well. Once we enter the website, it is very easy to find the mortgage calculator. They offer us to quickly estimate payments for fixed, adjustable & IO only loans side-by-side. So we can calculate the installment according to the type of mortgage that interests us the most.

It is a very intuitive calculator. You can compare loan terms! We can also use their side-by-side calculator to compare two loan options on the same page before you start, and even estimate future loan balances based upon the upfront payment, monthly payments and the anticipated rate of interest.

Once there, we can make a comparison of different loan terms, down payment amounts, fixed vs adjustable rates, purchase vs refinance loans, discount points and many other features. We really like this comparator because it is very simple, and it gives us very valuable information that we do not always find: a breakdown of expenses.

But not only that. On the same page where you can calculate monthly payment estimates, Compare the savings of various commission rebate options, analyze the potential returns on residential income property investments.

In addition, the calculator is very easy to use. All in a few seconds. The information is one of the most complete. In addition to the rates, you will know how much time and money you'll save paying off your loan on a bi-weekly payment plan. You can also calculate biweekly payments with extra payments and create amortization schedules for the new loan payments. The Mortgagecalculators website compares everything, and with mortgages it was not going to be an exception. The calculator works fine. We couldn't hope for anything else.

How does a mortgage calculator work?

This calculator offers blank fields for the user to fill in and to be able to give an estimate of the number of letters and the amount of the same according to the conditions of the loan that he wants to value.

Thus, the data you need are the amount to be requested, the term or number of years in which it is going to be amortized, and the interest rate (fixed or variable and its percentage) to be applied. With them, the mortgage calculator offers the monthly payment to be paid during the next few months.

This would be the example of a basic mortgage calculator. It is a very useful tool to have an approximation of what the mortgage loan would mean each month for a specific amount and term. There are more complete mortgage loan calculators that offer the total amount of interest paid or that directly offer an amortization table.

In general, with a mortgage calculator, the saver can know whether or not the resulting monthly payment is sustainable. That is valued by comparing the letter with the net monthly income. The advice of the experts is that the monthly payment does not exceed 30% of the net monthly income of the saver or savers because it would leave their ability to pay very limited.

The normal thing is that savers play with the loan repayment term to lower the monthly payment, since varying the amount to request is more complicated. However, that would be a mistake because no financial institution - except for very private clients - lends 100% of the price of the house.

In summary, a mortgage calculator is a calculator that allows us to assess the basic aspects of a mortgage loan. As we look for a more exact result, we will have to go to more advanced calculators. Even so, there are conditions that mortgage loan calculators do not collect and that should be known.

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