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Mortgage Payments
Planning the amount of your mortgage payments is an important part of buying
the right Massachusetts home mortgage
or New Hampshire mortgage. If the
payments are too much to manage, then you may run into credit problems or heaven
forbid, foreclosure. Those are good reasons to plan your mortgage payments well
from the start.
A mortgage payment calculator or chart
are handy guides to test different payment scenarios so you can find a amount
of monthly payments you can manage. You can purchase mortgage payment tables at
your local bookstore. You should also take account of all your other monthly expenses
as well to get a more realistic look at your financial capability and as well
what mortgage lenders are going to be examining
when you apply for your new home mortgage.
Your mortgage payments will be strongly determined by the length or term of
your home loan and by the type of interest rates you agree on with your mortgage
lender.
Let’s take a look at a typical mortgage loan payment. It is composed
of the loan (principal) amount, the applicable interest
rate and the term of the loan. When you’re calculating loan payments,
round the numbers off so you see them clearly. Pennies can only distract you.
Mortgage Payment Chart
| 15 Year Home Loan Amount |
7.00%
Interest Rate |
7.25%
Interest Rate |
7.50%
Interest Rate |
7.75%
Interest Rate |
8.00%
Interest Rate |
8.25%
Interest Rate |
| 160,000 |
1438 |
1461 |
1483 |
1506 |
1529 |
1552 |
| 200,000 |
1800 |
1826 |
1854 |
1883 |
1912 |
1941 |
| 210,000 |
1888 |
1917 |
1947 |
1977 |
2007 |
2038 |
| 220,000 |
1978 |
2008 |
2040 |
2071 |
2103 |
2135 |
| 230,000 |
2068 |
2100 |
2132 |
2165 |
2198 |
2232 |
| 240,000 |
2157 |
2191 |
2225 |
2259 |
2294 |
2329 |
| 400,000 |
3600 |
3652 |
3708 |
3766 |
3824 |
3882 |
As you can see, the monthly payments are sizable indicating that home
mortgages are a sizable investment asset and you should be leveraging the
accumulate home equity. Whether you’re
doing a mortgage refinancing or purchasing a new home, you should have something
more to show for your monthly payments than an account notation showing your remaining
debt.
Fixed Rate Mortgage Payments
With fixed mortgage rates, the interest is fairly steady the entire length
of the loan term. If you decided on a 30 year fixed rate mortgage, then you’re
payments will be consistent for the entire 360 mortgage payments you pay. Some
so called fixed rate mortgages do have some variability built into them, so check
with the lender before signing your mortgage contract.
Adjustable Rate Mortgage Payments
ARMs or adjustable rate mortgages
are characterized by variable interest rates. As bank interest rates vary, so
does the cost of money for the lender. That increased cost will be passed onto
you. However, if rates fall, you’ll enjoy significant savings, unlike those
in 30 year fixed rate mortgages who will
be stuck with continuing high interest rates. Adjustable rates tend to float with
the prevailing interest rates usually every 6 to 12 months. With adjustable
rate home mortgages, your loan payments could vary and for some that variance
is unsettling. However, for short term mortgages, adjustable mortgage rates can
result in savings.
GNA Mortgage Group's 15 year and 30 year
mortgages can make a big difference in your financial future. Call us to discuss
more than just mortgage rates and mortgage
payments.
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