Your total monthly payment
The experience of purchasing a home can be exciting, but the process of acquiring a mortgage can feel confusing. Financial Concepts Mortgage offers you a mortgage loan calculator in Oklahoma City, Oklahoma. By inputting your information, you can begin to understand your options for a loan, including your monthly payment. We will also share some tips and tricks on adjusting the variables to get the lowest monthly payment possible. Learn more about using our mortgage payment calculator.
How to Use Our Mortgage Calculator
The mortgage calculator is designed to simplify many of the complex factors that affect loans. Here, you can begin to understand your monthly payment based on the price of the house, the down payment, the term length, and the interest rate. When you hit calculate, your estimated monthly payment will appear. Below, you can learn more about each section of the mortgage loan calculator. As you adjust each variable, you can find a monthly payment that suits you best.
Understand the Mortgage Loan Calculator Terms
If you do not have much experience with mortgages in the past, some terms may be a little unclear to you. That’s okay. If you aren’t sure where your interest rate comes from or how much of a down payment to put in, we’re here to help you understand each factor. Here, we will define each of these terms and briefly explain how they impact your monthly mortgage payment.
The purchase price reflects the amount of money you will need to borrow to purchase the home. Simply, the more money you need to borrow, the more you will need to pay back each month. A lower purchase price is one of the best ways to reduce your monthly mortgage payment. You may not have complete control over the down payment available to you or the interest rate extended to you, but you can always reduce the potential purchase price.
Even when you purchase a home with a mortgage, you pay a portion of the purchase price upfront in cash. For many people, the down payment is limited by their available funds. In most cases, the minimum down payment is around 3% for a conventional home loan and 3.5% for FHA loans. If increasing your down payment is possible, it can help you reduce your monthly payment and your interest rate. You will notice your down payment displayed as a percentage on the right side of the mortgage payment calculator.
Mortgage Loan Length
The term of your loan determines the amount of time it will take to pay the borrowed money back entirely. The most common mortgage loan lengths are 15 years and 30 years. However, there are options outside of those two. If you are settling down in your family’s forever home, increasing the term length of the mortgage is an effective way to reduce your monthly payments.
Mortgage Loan Interest Rate
The mortgage loan interest rate is one of the more mysterious factors that affect mortgages. Interest rates change over time and are different for each person. Your credit score, down payment, and loan length will all affect your interest rate. Your actual interest rate will be given to you once you submit an application.
How to Reduce Your Monthly Mortgage Payment
As you can see, your monthly mortgage payment is affected by many different factors, which means there are various strategies for reducing your monthly mortgage payment. It all depends on your particular situation. If you are moving into a long-term home and do not have very much available in terms of down payment, you may want to seek a mortgage with a longer loan term. On the other hand, if you don’t have the best credit but can provide a substantial down payment, that is another way to lower your monthly mortgage payment.
Fill Out Your Mortgage Application Today!
We offer many different options, from VA home loans to conventional home loans. Our whole team is here to help you finance the home of your dreams, but we also want to ensure that you understand the financial impact of your mortgage along the way. That is why we offer this mortgage loan calculator. Once you understand what type of loan would be optimal for you, fill out an application and start moving toward purchasing the home you have always wanted.