Many people rent homes because they are unable to meet the requirements that mortgage lenders set.
The amount of rent they pay, however, is usually more than a mortgage on a similar property would cost. So, the problem isn't in the repayment but in the initial qualifying! Time to get on the net and check this out with a mortgage calculator!
If you are in this situation, it could be that when you moved into your home you didn't qualify for the mortgage. Perhaps you were a student or unemployed, but your circumstances could be very different now. And it's time to move on.
Take a look at some properties like the one in which you live. Find out how much they cost. Use these figures in a rent vs. buy calculator to see what the difference between what you pay now and what you could expect to pay with a mortgages.
A mortgage calculator will give you the figures to input for the "buy" information part of the rent vs. buy calculator. Although it may at first seem very financially attractive to buy your own home, you also need to consider the "extras" that your landlord takes care of now – such as amenities, utilities and building maintenance.
Those costs are outside the scope of most mortgage calculators. They all become your responsibility once you have a mortgage. But, the mortgage calculator may set your mind at rest convincing you that a home with a mortgage is actually cost effective! You're saving money!
Okay, so with the extra utility bills, perhaps extra commute bills, etc., it might not be much money, but it is YOUR house.
As you make regular payments, you'll build collateral, or equity! Use a mortgage calculator to see the amazing effects of rolling that small surplus into the principal of your mortgage.
Knowing that your monthly payment goes toward paying for your home rather than the right to use your present living accommodation has to be a big incentive, right? Buying a home is more than paying for a place to stay; it's an investment towards your future. Some mortgage calculators have the ability to generate an amortization schedule.
The longer you keep your home, the more reward you see for your monthly payments. The amortization schedule breaks down exactly how much equity is accruing each month. Collect information about housing prices, interest rates and what you can afford. Then check it out through several online mortgage calculators and average the ones closest together.
A little work should show you what you might best be able to afford. You may decide that it is the right time to buy rather than rent.
If that home you chose, costs less than your rent had been (even given the additional expenses), you should consider making regular additional payments against your outstanding principal. A mortgage calculator will help to illustrate the amazing effects of making even small regular payments does to your mortgage!
