There are a range of mortgage calculators available on the web, but most are very similar and easy to use. You simply type the requested information such as salary and deposit into the online form and the program returns the maximum amount of money a mortgage lender is likely to loan you.

Alternatively, a variation is to key in the size of the loan you think you will need, the interest rate you think you will pay and the term of the loan, and the calculator returns your estimated monthly payments. This second option leaves it to you to decide whether you could afford to make those payments or not (some calculators deduct your other regular outgoings for you). Whether or not a mortgage lender will agree with you is another matter. In fact, in both cases the calculators are meant as guidelines rather than guarantees. There will be various other factors you will need to bear in mind, such as any fees and the precise type of mortgage, when you actually approach a broker or lender. Nevertheless, the mortgage calculator provides a valuable indication of what you can realistically afford to borrow.

This entry was posted on Tuesday, November 25th, 2008 at 9:51 am and is filed under Calculator. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.