If you’re in the market to buy a new home or refinance your current one, you’ve probably used a mortgage calculator to get a better idea of what your monthly payment might be. In this post, we’ll discuss what mortgage calculators do well and where they sometimes miss the mark.

Fast and easy results

Using an online mortgage payment calculator is a great way to learn about how much you’ll need to pay each month on a home loan. You simply input the cost of the home, your down payment, a sample interest rate and the length of your loan, and the calculator will immediately show you the result.

Want to compare different purchase prices, rates, down payment amounts or loan terms? No problem. Change the inputs and you can quickly compare multiple loan scenarios. You can use this information to help you figure out how much house you can afford, how much you want to put down, the impact of shopping around for a better rate and so much more.

The problem is, mortgage calculators don’t always take into account every cost associated with a mortgage, which can be misleading if you don’t know what to look for.

The more parameters the better

Many calculators only show you what you’ll pay in principal and interest, which is a good start but doesn’t paint the full picture. Avoid misleading numbers by using a mortgage calculator that lets you input data for property tax, homeowners insurance, mortgage insurance and HOA dues. You’ll be able to compare the full amount you’ll be responsible for each month to make smarter money decisions.

Lenderment’s mortgage calculator

At Lenderment, we want our clients to get the right mortgage to match their unique personal finance goals and situation. Our mortgage calculator lets you input all the costs associated with owning your home so that you can see the full picture of how a new home loan or refinance will impact your monthly budget. We even include a graphical amortization interface to show you how your annual breakdown will shift over time.

Access the Lenderment Mortgage Calculator here.

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