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How Do Mortgage Calculators Work?

How Do Mortgage Calculators Work?

We have a saying here at Mr. Cooper: Wherever you are on your journey to your next dream home, we’ll meet you there — and we’ll have tools and expert advice at the ready. Among these tools are our mortgage calculators, which can help potential homebuyers prepare to shop for both a new home and find the best loan for their unique financial situation. Here’s how some of our mortgage calculators work.

Rent vs. Buy Calculator

The rent vs. buy calculator can help customers determine whether or not “now” is the best time to buy a new home. Just put in your current rental expenses and how much you expect your yearly rent to increase, then adjust the details about a hypothetical home purchase and mortgage. The calculator can be adjusted to show the amount you could save by buying versus renting over the next seven years, or vice versa.

Home Affordability Calculator

“How much house can I afford?” is a question all prospective homeowners should ask themselves, and Mr. Cooper’s price range calculator is here to help. Plug in some numbers like your down payment amount, your total monthly payment, the term of your loan, and the percent interest. The calculator will give you an idea of the upper limits of your price range.

Mortgage Amount Calculator

Another burning question for potential buyers: How much could I borrow? Understanding the size of loan you’re likely to qualify for can help you better focus your search. To get a range of what you might be able to expect from lenders, plug in your income, your debts (student loans, auto loans, credit card payments, etc.), and the type of loan you are looking for. The calculator will do the heavy lifting and display amounts that range from the conservative end to the aggressive end. This calculator can give a snapshot to help guide your way toward your dream home.

Mortgage Payment Calculator

Think you’ve found the right place? Mr. Cooper’s monthly mortgage payment calculator can give you a sense of how much your monthly mortgage payment might be every month, which could help you budget. Enter details about the property you’re considering, your hypothetical down payment percentage, and the type of loan you’re thinking about obtaining. The calculator will then estimate your total monthly payment. (Remember that in most cases if you put down less than 20 percent, lenders will require you to carry mortgage insurance. The calculator can take those costs into account, depending on your hypothetical scenario.)

Refinance Calculator

You’ve been there, done that when it comes to buying a home. But now you’re wondering if you can optimize your finances and lower your monthly payments by refinancing. If so, this refinance calculator is for you. Plug in information about your current loan, your potential future loan, the appraised value of your home, and your tax details. This calculator could help you decide if and when refinancing might make sense.

Mortgage Payoff Calculator

Paying off your loan early could help you save on interest. Mr. Cooper’s mortgage payoff calculator takes a look at your current loan information, plus details about the type of extra payments you’re interested in making, and evaluates what’s possible. Just remember: There could be penalties associated with prepayment. Be sure to research the terms of your loan and discuss your options with a trusted mortgage professional.

 

Want to learn more about how Mr. Cooper’s team of experts is helping home owners navigate the buying process and keeping the dream of home ownership alive? Click here to read about how we’ve helped some of our customers.

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