When you start planning to buy a home, you probably have a few expectations. The first reality is that buying a house is expensive. And the second is that you will need to borrow a lot of money to do it unless you’re already rich. You may not have a specific place in mind, but you probably have a good idea of the qualities the property needs. Getting down to brass tacks, you need to figure out how to afford it all with your income and savings. This is where a mortgage calculator comes in.
How to Work it Out
Calculating mortgage payments follow a seemingly complex formula. You can try working the numbers out yourself on a spreadsheet. Wikihow has an easy to follow the visual process that can guide you. However, this further complicates the first step of an arduous process. There are already sources online that can do this for free.
At the end of the day, the most basic computation should give you insight on three crucial points:
- Amount of money you need to borrow
- Payment over a given period and frequency
- Total cost including interest and other fees
In addition, the website should be able to educate you and provide honest insight on products available on the market.
The Government Approved Mortgage Calculator
The first online mortgage calculator worth mentioning is provided by the Australian Securities and Investments Commission: Money Smart. Right away, you feel a sense of trust as the service is provided by the government. It’s not trying to sell you anything, it’s not going to get a commission, and it prioritizes your best interest.
Jumping straight into their mortgage calculator, you immediately see three modes of computation. These fall in line with the three critical points. With each mode, you can input additional values to make your own comparison and test things out.
After putting in all the relevant information, the calculator shows a simple graph. It reveals the total amount you will have to spend over a number of years to completely pay everything off. This can serve as a benchmark from which we can compare all other services from different websites.
Money Smart offers a lot of resources that advise on every financial concern. You can find articles on investment, savings, insurance, and even scam protection. There is a wealth of information to keep you financially healthy.
With all that said, it’s impartiality is a kind of weakness. Why? There is no real glimpse of the current choices in the market. It can show the total cost of 3.5% interest loan, but from which lender? Money Smart also can’t factor the rise or fall of interest that can be changed by the bank (in the case of Variable Rates) at any time. So, it’s a safe and informative choice, but also hypothetical in some respects.
Simple and Easy
Your Mortgage is one of the more popular options online that meet the benchmarks set by Money Smart. The website offers an intuitive service that meets more specific concerns and provides up to date lender options.
Right away, you’re presented with their mortgage calculator with one space to fill in. The other space is a conservative estimate of the kind of interest rate you can realistically expect. Working to figure out other computations on their home loan calculator will be just as easy. You only need to put in 3 values before being given the answers you need. Finally, answers are presented in a clear detailed format.
Exploring further, you can find more calculators that can compute expenses for stamp duty, lenders mortgage insurance, capital gains and a variety of others that might be more pertinent to your needs. All in all, there are 16 different calculators to choose from and each one presents results in a simple table.
After you get the results, you have the option to connect with a broker. Understandably, this might seem too much. But just remember that the service is free and you don’t need to commit to anything. This is just convenient if you need someone to speak to and answer questions.
Additionally, there are articles and other resources that aim to educate you about buying a property. Unlike the government website, it gives you a snapshot of featured home loans from some reputable banks and lenders. It is important to remember, however, that the featured deals are not the only ones available. You can definitely find better ones that you’re more comfortable with. It’s definitely good to read up on loan options,
The Comprehensive Mortgage Calculator
If you want more comprehensive information and a mortgage calculator that takes more factors into account, then you cannot go wrong with Canstar. It is arguably the biggest Australian Financial Comparison site and it has a lot to give. The website aims to provide the most complete information that is easy to comprehend.
It has 9 different calculators focused on home loans and their mortgage calculator is quite comprehensive. When you input data it will ask you for income and expense details on top of your preferred loan information. The final computation is presented as a graph projecting how the loan is repaid over time (usually 25-30 years). This is roughly the same graphic you get from using the Money Smart site.
Right away, the website empowers you with tools to compare and browse through different choices. Whether you’re purchasing your first house, purchasing property as an investment, or refinancing, you are sure to find a list of products that are best suited to your status. The listed deals are rated and include bits of the most relevant information that will affect your comparison.
As with the other websites above, there are short resources that can help educate you and make informed decisions. It shows loan options with enough relevant information and a good number of variety.
If none of these meet your needs, then you should at least have a better idea of how to do things. There are many sources online, but not all of them have your best interest in mind. Ultimately, you want to find one that you can trust and rely on.