Make sure your mortgage calculator tells you costs beyond principal and interest
Consumers are doing all they can to search for offers and reduce costs, but when it comes to buying a house, we assume it’s a smart buy without looking at the additional costs. These costs can run into the tens of thousands of dollars over the life of your loan. Use a mortgage calculator that calculates these numbers.
These are also known as PITI calculators. PITI stands for main, interest, taxes, and Assurance. Beyond loan payments, these calculators tell you how much you will pay in property taxes over time and how much insurance will cost over time. (If you have mortgage insurance, be sure to add this to your insurance costs when using the calculator.) Here are a few tools, including a PITI calculator, that will give you a better overall financial picture when thinking about to buy a house:
Your research should include tools like these, but not limited to. For more information on buying mortgage loans with calculators, check out the full CFPB post on the topic at the link below.
Your mortgage calculator may be preparing a surprise for you | CFPB
photo by Pixabay.