Mortgages, like homes, come in all shapes and sizes. Your preferred lender will be able to suggest a mortgage that best meets your needs. They will also help you decide how much you can afford and ultimately, how much you want to spend. Deciding on a rough budget for your new home purchase prior to visiting any sales offices will help keep your home buying experience a pleasant one. Of course at Glenview Homes, we would be more than happy to have one of our Mortgage Specialists contact you directly to complete a mortgage pre-approval at your convenience.
Mortgages have many variables including purchase price, down payment, interest rate, type and term, amortization period and payment terms. The following chart shows examples of estimated monthly payments based on certain criteria (all interest rates are fixed in this example):
|Purchase Price||Down Payment||Loan Amount||Interest Rate||Interest Term (Years)||Amortization Period (Years)||Estimated Monthly Payments|
- Mortgage loan insurance is not included in the above calculation. This information is provided for illustration purposes only.
- Please contact your preferred lender for more information.
By adjusting one variable or another, you can increase or decrease your payment amount so that it works for your household. For example, rather than having a monthly payment term, you may prefer to have an accelerated bi-weekly payment term. If your monthly payment is $1000, your accelerated bi-weekly payment would be $500 with a payment due every two weeks, regardless of the month. On an annual basis, this increases your mortgage payment by $1000 (or an additional monthly payment) and over time, can significantly reduce the amount you pay in interest on your loan. By making a small, barely noticeable change, you will pay down your mortgage sooner and will have paid less for it!