Sunday, September 21, 2008

o Mortgage Calculator

Before buying a home, you should ask yourself, "Is it better to rent or to buy?" The interest costs on a mortgage loan are front-end loaded, meaning that the majority of interest costs are paid in the early years of the mortgage loan. This means that most of your monthly payments in the first half of your mortgage loan are going to pay interest, and very little of them go toward actually paying down the loan principle. If your monthly rent is cheaper than the monthly interest payments on your mortgage, you should probably continue to rent. Prepayments on your mortgage help to save money and should be factored into your overall cost of carrying a loan. The mortgage loan officer should make you do an analysis of the interest rate cost versus the cost of renting.

Additional costs of home ownership are maintenance and repairs, property taxes and insurance. A house, for most people, represents a large percentage of their overall wealth tied up in a single asset class. Real estate prices can move both up and down; its not a risk free investiment.

Below are some calculators to help you make your decision:
Posted by ljp at 11:14 AM

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