MORTGAGE CALCULATORS

Follow these links to calculators that will help you figure mortgage costs.

By selecting one of the links above, you are leaving my web site and entering a third party web site. I have provided these links for your convenience, but do not endorse or assume any responsibility for the content, links, privacy policy, or security policy of the web site. Any tools on the web site are provided for educational and illustrative purposes only. The accuracy of the calculations and their applicability to your circumstances are not guaranteed. For personal advice regarding your financial situation, please consult with a financial advisor.

 

COMMON QUESTIONS

CAN YOU GET A MORTGAGE WITHOUT A CREDIT SCORE?

The answer is, yes! If you apply for a mortgage without a credit score, you’ll need to go through a process called manual underwriting. Manual underwriting means you’ll be asked to provide additional paperwork—like pay stubs and bank statements—for the underwriter to review. This is so they can evaluate your ability to repay a loan. Be prepared for the loan process to take a little longer. Note: Not having a credit score is different than having a low credit score. A low credit score indicates you're a riskier borrower and a lender will likely charge you a higher interest rate or deny financing.

WHAT ARE CLOSING COSTS?

Closing costs include the myriad fees for the services and expenses required to finalize a mortgage. You’ll have to pay them whether you buy a home or refinance. Average closing costs for a buyer run between about 2% and 5% of the loan amount.

WHAT DOES A MORTGAGE PAYMENT INCLUDE?

A typical monthly mortgage payment includes:

  • Principal

  • Interest

  • Homeowner's insurance

  • Property taxes

  • Private mortgage insurance (PMI), if you put less than 20% down on your home

If you want to pay more on your mortgage, be sure to specify you want any extra money to go toward the principal only, not an advance payment that prepays interest.

WHAT HAPPENS WHEN YOU QUALIFY FOR A LOAN?

To begin the mortgage process, you’ll need to meet with a lender and be prepared to provide proof of:

  • Where you work

  • Your income

  • Any debt you have

  • Your assets

  • How much you plan to put down on your home

Just because you qualify for a big loan doesn't mean you can afford it! A good lender will clearly explain your mortgage options and answer all your questions so you feel confident in your decision. If they don’t, find a new lender. A mortgage is a huge financial commitment, and you should never sign up for something you don’t understand.

WHAT'S THE DIFFERENCE BETWEEN BEING PREQUALIFIED AND PREAPPROVED?

A quick conversation with your lender about your income, assets, and down payment is all it takes to get prequalified. But if you want to get preapproved, your lender will need to verify your financial information and submit your loan for preliminary underwriting. A preapproval takes a little more time and documentation, but it also carries a lot more weight with sellers when you’re ready to make an offer on a home.

WHAT HAPPENS AFTER YOU GET PREAPPROVED FOR A MORTGAGE LOAN?

Getting preapproved for a mortgage is just the beginning. Once the financial pieces are in place, it’s time to find your perfect home! While it’s one of the most exciting stages of the process, it can also be the most stressful. That’s why it’s important to partner with a buyer’s agent.
A buyer’s agent can guide you through the process of finding a home, negotiating the contract, and closing on your new place. The best part? Working with a buyer’s agent doesn’t cost you a thing! That’s because, in most cases, the seller pays the agent’s commission.

 

Kimberly Van Hal, REALTOR® | Berkshire Hathaway HomeServices Premier Properties

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