The Online Mortgage Calculators Available

Mortgages can certainly be confusing. The government has made lenders make interest rates and charges obvious in their adverts although when you want to know what the mortgage will cost you the APR rate doesn't really answer that question and is only really useful as an indicator, the lower the better.

There are many handy online mortgage calculators that will help you work out approximately how much you can borrow from a lender, how much it will cost you to borrow and what the repayments will be. These calculators are a good guide but will of course depend on individual circumstances such as credit history, job status and expenses.

How much you can borrow calculators take your income and if you have a partner theirs too, applying a formula to give you a figure that lenders would probably allow you to borrow. Different lenders will loan various amounts and use different multiples of income however you can expect it to be around three to four times for a single applicant and two and half to three for joint applications.

The other popular mortgage calculator answers the question, how much will my monthly payments be? This one will normally allow you to input what you are looking to borrow, the interest rate applicable and over what period of time you want to borrow the money. This one is great if you see a low APR and want to know what the monthly costs will translate too. Helping you make the decision of whether you will be able to afford a house you have seen or will aid you if you know the price range of houses that you afford.

These are the two most common calculators however there are plenty others that cover other areas such as comparing interest rates, very useful just now to see the difference in repayments for a fixed rate mortgage and a variable rate mortgage. You may go for a home that means a large proportion of your income goes to paying the mortgage; it is useful to know how the payments would rise when interest rates climb back up to five, six per cent.

Have a search for an online mortgage calculator where you can see all the various mortgage calculators available that will help answer many of your questions.

Kim has 2 years experience in the finance industry. She Enjoys writing articles on different finance related topics and has extensive experience in Mortgages and how to find the best rates.