At Capital Mortgages in Ottawa we strive to be your personal mortgage broker for life.

How Our Mortgage Calculators Can Help Your Financial Decision

The process of purchasing a home and arranging for a mortgage can be almost overwhelming, especially to a first-time home buyer. When doing the research, it is important to get assistance to understand terms and conditions. Informed decisions about the terms and budgetary impact is a part of choosing the right financing package. Learn here how our mortgage calculators can help your financial decision.

There are various components that are the basic elements of loan calculations. These include the payment frequency, the amortization period, the loan principal amount, the interest rate and the payment. If you know any four of these five factors, you can calculate the fifth using an interactive calculator.

Another way to approach obtaining a home loan is to learn what the maximum amount you can afford to borrow. For this information, you should use the annual family income and the minimum monthly payments for any existing loans or credit cards, including any secondary financing monthly payments as the starting point. You will need to estimate annual property taxes, utility costs or condo fees and the going interest rate. The interactive calculator will let you know the monthly payment and the maximum loan amount.

The frequency of the payment will make a difference in the total amount paid in interest. If you pay weekly, for example, the interest payment will be lowered, as well as the total amount paid. For those with regular weekly income, this frequency represents the best deal. Other common payment frequencies are bi-weekly, semi-monthly and monthly. Most people do not realize that paying twice a month instead of once per month can save you thousands of dollars over the course of the repayment period.

Another factor that can shorten the term of payments and reduce interest paid is making a prepayment. Use the calculator to learn how much even a $100 prepayment at the beginning of the term will reduce the costs. Adding an additional $10 to each payment will drop the principal faster and result in a lower overall cost.

When you learn how our mortgage calculators can help your financial decision, you will be armed with the best information to search for the right property. Avoid overextending financial capabilities. The professional staff at Capital Mortgages is able to work with you in your home buying choices. When you have the right financing information, you can find the right property and not waste time on something that is out of your reach.

Check out our Mortgage Calculators here