Make Sure Your Mortgage Calculator Shows Your Expenses Are Outside of Principal and Interest
Consumers go out of their way to seek deals and cut costs , but when it comes to buying a home, we often think it’s a smart purchase without looking at the additional costs. These costs can be up to tens of thousands of dollars over the life of the loan. Use a mortgage calculator that calculates these numbers.
They are also known as PITI calculators. PITI is principal, interest, taxes and insurance. Apart from the loan payments, these calculators tell you how much you will pay property taxes over time and how much insurance will cost over time. (If you have mortgage insurance, be sure to add that to your insurance costs when using the calculator.) Here are a few tools, including the PITI calculator, that will give you a more complete financial picture when you are thinking about buying. House:
- Bankruptcy PITI Calculator
- The New York Times Rent and Buy Calculator
- Smart asset closing cost calculator
Your research should include, but not be limited to, similar tools. For more information on buying mortgages using calculators follow the link below in the CFPB’s complete publication on the subject.