It makes sense to figure out expenses before you purchase a new home or refinance your current mortgage.  It is very simple to find and use mortgage calculators online, as many financial institutions, mortgage lenders, and real estate websites offer free loan calculators.  Some mortgage calculators allow you to enter a dollar figure that you want to spend per month, and once you input the interest rate that you are eligible for, you can get an idea of what sort of loan you can afford at that monthly payment.

 

When using mortgage calculators, it is wise to set a general purchase price range for yourself, and enter those figures in along with your current mortgage interest rate to determine your monthly payment.  Also, you will need to factor in PMI (property mortgage insurance) if you are paying that with your loan.  Most lenders also require that you pay homeowner’s insurance, and you might be able to include that into your monthly payments as well.

 

Also, if you are not paying your property taxes separately, you will need to factor that into your monthly payment as well.  These are all key things to think about when you are using mortgage calculators, because those extra hidden costs that are sometimes forgotten can be a payment difference of hundreds of dollars.