Mortgage-calculator

Mortgage calculator

  A mortgage calculator is a very helpful tool that makes estimating your monthly mortgage payment easy. The user-friendly design will give Just what you need to know before jumping into buying your dream home. 

An online mortgage calculator can help with your monthly mortgage payment estimation with little details. In addition, it can highlight the total amount of interest over the lifetime of the mortgage.

Takeaways

Why do you need a mortgage calculator?

Often time people just jump into buying a house without doing the necessary due diligence. Also some mortgage companies do not have the best interest of their clients in mind. This tool provides an extra layer of comfort for those looking to have a clear picture of the evolution of the total cost of their property

What is it for ?

A mortgage calculator is a simple calculator with empty fields. Those fields are typically used to estimate your monthly home mortgage such as home value, down payment, type of mortgage, interest rate. In the end, you should an idea of how much your home is going to cost you. It would help you compare different mortgage types and calculate your down payment.

How it works ?

Just input the requested information in the appropriate fields such as the home value, your down payment amount, the type of mortgage, interest term and the interest rate. See how much house you can afford!


Mortgage terminologies

Down Payment:

The initial cash payment, usually represented as a percentage of the total purchase price, a home buyer makes when purchasing a home. For example, a 20% down payment on a $200,000 house is $40,000. A 20% down payment typically allows you to avoid private mortgage insurance (PMI). The higher your down payment, the less interest you pay over the life of your home loan. The best way to pay for a home is with a 100% down payment in cash! Not only does it set you up for building wealth, but it also streamlines the real estate process. 

Home Price:

The dollar amount you expect to pay for a home. According to the US census, Over the past 50 years, the average price of a new home in the U.S. rose from $19,300 in 1963 to $76,400 in 1980 and skyrocketed to $394,000 in October of 2017.

Interest Rate:

The cost of financing a home purchase. This is generally shown as an annual percentage of the outstanding loan.

Homeowner’s Insurance:

Generally a requirement for any home mortgage. The premium is usually included with the monthly mortgage payment. Costs and coverage vary by state and the value of the home.

Private Mortgage Insurance (PMI):

Calculated annually as a percentage of your original mortgage amount based on your credit rating and down payment. PMI protects the lender in the event you do not pay your mortgage, and it generally costs 0.5% of your loan each month

Monthly Payment:

The amount you pay each month for your mortgage, homeowner’s insurance, and HOA fees. This payment should be no more than 25% of your monthly take-home pay.

Homeowner’s Association (HOA) Fees:

Fees due in exchange for being part of a homeowner’s association. A homeowner’s association is an organization in a planned community that maintains and reinforces rules for the properties in its jurisdiction

Property Taxes:

Taxes levied based on the government’s appraisal of your property. These are usually included as part of your monthly mortgage payment. Property taxes vary greatly depending on location and home price. National state averages range from 0.32% to 2.31%

Mortgage Types:

15-Year Fixed-Rate Mortgage

A home loan designed to be paid over a term of 15 years. The interest rate remains the same for the life of the loan.

30-Year Fixed-Rate Mortgage

A home loan designed to be paid over a term of 30 years. The interest rate remains the same for the life of the loan.

5/1 Adjustable-Rate Mortgage (ARM)

A home loan designed to be paid over a term of 30 years. The interest rate does not change for the first five years of the loan.

Conclusion

In conclusion, it is important to always ask yourself one single question before you take the train and buy your dream home. You need to ask yourself if you can afford the home in a very honest and transparent way. Nevertheless, you shouldn’t always think about buying a house as an individual pursuit. You can always explore alternatives like co-buying a house.

How To Save Money for a House : Out of The Box Steps

Buying a house is not cheap. More buying the house of our dream comes at a hefty tag price, down payment, closing fees, appraisal fees, mortgage, maintenance fees, tax and in some cases renovation fees. So how can we save money for a house? Here are some creative tips that can help you achieve that goal.

Out of The Box Steps to save money for a house:

A.Trim your budget:

  • Cut cable
  • Pack your lunch
  • Make coffee at home
  • Cancel gym memberships and all unnecessary membership payment. For the gym, for example, take advantage of all the outdoor activities.

B. Increase your income:

  • Work overtime
  • Start a side business
  • Get a second job even a third job
  • Change job and go for jobs with commissions and bonuses.

C. Join or create a saving circle:

A saving circle is a great way to work towards achieving that goal. Because is a group of like-minded people and the support system provided will keep you on track. Also, they are many saving circle opportunities available out there including organizations.

D.Co-buy a house:

Co-buy a house will not only save you a lot of money but also enable you to get access to your dream house, in your dream location. In addition, because it is a pool resource you can be more ambitious. Obviously, you need to associate yourself with people trusted and reliable people. After, the purchase you can renovate the house and modify it to fit your vision.

E. Renovate the family house: 

One of the most surprising ways to save money is simply by improving your parent’s house. Indeed, if your parent’s house happens to be in the same city, apply for a permit and redesign the house to fit the new paradigm. Actually, this is very effective in many countries around the world. Typically they will just add a new apartment in the family property.

F. Take advantage of high-interest on savings account and leverage the interest.

Some bank will offer a pretty decent interest rate in a savings account if you put in a certain limit every month. Even better if you block the money for a certain period of time usually at least 6 months. Moreover, if you are a member of a saving circle or any other similar program chances to achieve a high interest is bigger.

E. Keep away your ego

This is a very important aspect if you want to save money to buy a house. You’ve got to get a hunter mindset. Because you are in the lookout for any opportunity that can help you to achieve your goal. That is why you don’t have to neglect any opportunity either to make money or to save money. In addition, you need to be willing to take strong action steps.

In summary: How to save money for a house

Saving to buy a house is challenging as illustrated by many available resources. Nevertheless, by leveraging the power of the power you can minimize the risk associated with house ownership before, during and after the process.

 

How To Invest & Make Money in Real Estate With Trusted People

Real Estate investment is one of the most exciting ways to improve your finances if done right. That’s because properties appreciate with time. What’s more, it is a lifetime asset with low-risk and many ways to get a return on investment. Yet sometimes we are scared of the challenges that come with the investment. Investing in real estate with trusted people can be the answer. But how exactly does it work?

How To Invest & Make Money in Real Estate With Trusted People

The process of pooling financial resources with a group of people to actively invest in real estate; comes with fast returns both financially and morally. Although it is absolutely necessary to set up a due diligence process; to avoid all the pitfalls that come with doing business with friends, family or relatives.

How exactly does it work?

#1. Set objective by defining the scope of the project.

Remember you are building a company, thus do your homework. Work on a business plan, familiarize yourself with the industry and connect with industry key players. At this exploration stage, be open-minded and flexible. The more you talk to people the more your initial execution can shift. Once everything is set you can move on to the next step. You do not need a perfect plan.

#2. Communicate your idea to your immediate environment.

Share the idea with the potential target audience you want to include in the venture. Then, make a list of all those expressing a strong interest in joining the journey. Finally, set your limit number of people and amount to raise for a start.

#3. Vetting, vetting, and vetting.

This is the most critical stage. Any mistakes here and you can regret it for life. The key terms here is Trust not feelings. Don’t hesitate to exclude any of your friends, relatives or family members that have issues with money. Take your time and do this right. Additionally, don’t be afraid to hire a professional firm to help out with the vetting process.

#4. Set up a structure & hierarchy of responsibilities.

Evidently, make sure everybody understand their responsibilities at a granular level. Definitely, print that out and distribute. Further, you can involve a lawyer or a CPA in the process. Some people will love to play an active role but some will just want to see their bank account growing.

#5. Choose a reliable investment partner: Expert Subject Matter

Choosing a person that has the experience and the knowledge of the industry is a critical component. This will help you avoid all the pitfalls of the industry. In addition to helping you navigate through all the paperwork, and anticipate future trends; the partner will bring serenity.

What are the advantages?

  • The amount of money raised can set you guys off for a good start.
  • The amount raised can help target really good locations. Location is key in real estate investment.
  • Bigger leverage capacity
  • Risk mitigation by leveraging the power of the community
  • Provide an incredible chance for everyone to become a successful real estate investor.

The math: How To Invest & Make Money in Real Estate With Trusted People

The case: You want to buy a new modern condo apartment (2 baths 4 bedrooms) in Boston and turn it into a roommate rental for students. In a good neighborhood. Also, we will use a conservative approach for revenue and cost.

Cost:

Revenue:

  • Rent/monthly per room: $800
  • Total annual: $38400

Leverage: Home-Equity appreciation will generate more cash for different projects. You can also leverage your pool contribution to get more money.

Raising $300k is not easy. But with a pool of 10 trusted friends and relatives. Each person’s contribution will be $30000. Plus, the more people you have the better and the opportunities will be limitless.

How 6 People Bought a House

Buying a house is very expensive. Consequently, very few people can afford to be homeowners. However, community ownership or co-buying could be a credible alternative. In this video, 6 people leveraged the power of their community to buy their dream house in their dream city.

Takeaways:

The concept definitely comes with some challenges but if done right with the right people, the advantages are enormous. Moreover, the option is probably one of the last chances many have left to be a homeowner.

Advantages of co-buying a property:

  • Loan eligibility: One of the biggest advantages of co-owning a property is that it increases loan eligibility.
  • Loan repayments: It is easier to repay the loan if there are two people or more paying off.
  • Tax Benefits: In order to claim tax benefits all-owners must apply for a joint home loan to claim a deduction.
  • Savings: The down payment is less
  • Wider Choice of Homes: When you pool your cash with a friend or family member, you’ll find that your options for where you can live increase considerably.
  • A good way to build wealth: If the operation is successful it would enable co-buyers to build up home equity and possibly expand the operation to other properties.
  • Shared expenses: Monthly utility bills, annual taxes, and insurance payments, and maintenance costs among other bills are all shared.
  • Fight loneliness: Socially provided you all get along well, you will always have someone to hang out with and provides support.

The math:

You want to live in a good and safe neighborhood. Trendy with social activities and positive vibes.

  1. Cost:
  • The property will cost you a fortune
  • Down payment
  • Mortgage Fees
  • Home maintenance fees
  • Home remodeling and renovation to provide privacy to all. For example multiple exit doors and private bathrooms.
  1. Savings: a conservative approach
  • Shared bills
  • Home equity can soar because of the location of the property, thus providing some loan equity to all.

Total savings: 50%

Learn more :

https://www.nolo.com/legal-encyclopedia/cobuying-home-30290.html

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