Financial Tools Center
Welcome to our Financial Tools Center. One of the first steps in purchasing a new home or property is making sure your finances are in good order and you know what homes you are able to purchase. By doing a little work on the front end, you can save a great deal of trouble later in the process. Below is a list of our most commonly asked questions and some easy to use calculators to help you on your journey. Keep in mind, these are financial tools only and cannot be used in place of a professional.
For more help and guidance along your journey of home ownership, feel free to call our preferred lender, Commonwealth Bank & Trust. Their mortgage division is fantastic and you will be in great hands with them and their financial tools.
What home can I afford?
How much income do I need?
The first task in any new home buying journey is to find out how much you can afford to pay for a new home. When you discover how much you are able to afford, then you can begin your work with a real estate agent.
Another common question as it relates to home ownership is about income levels. This is very important, but not always the primary factor to securing a loan. Remember that your credit is equally as important as your income.
Which loan is better?
What will my mortgage payments be?
Every situation is different. You must make the decision what length of loan is best for you. A good rule to follow will be to keep the length of your note as short as you can afford the monthly payments for.
There are many factors that affect your mortgage payment. Use this calculator to find out roughly what you will owe every month.
Should I pay to lower my interest rate?
Should I refinance?
This is another very personal and situation specific question. There are times where this is beneficial. In many cases, if you can afford to pay down your interest, the savings you get monthly may be enough to more than pay for your initial investment. Keep in mind that you can always refinance if you are not able to pay down your points initially.
There are many reasons to refinance your home loan. It is always best to consult a financial adviser to weigh the pros and cons towards refinancing your home loan.
Should I rent or buy?
How much will I save in taxes?
Renting can be great. You don’t have to worry about fixing equipment and appliances. But you also ultimately have anything to show for your payments. Renting may be necessary if you cannot get financing right away. If you can afford to buy, generally it is a good idea.
This one is always a great question and a huge benefit to home ownership. You should certainly double check with your financial advisor.
How long should my mortgage be?
What if I pay more each month?
Only you can really tell the answer to this. But consult with a financial advisor if you would like some help with deciding.
This is a great strategy if you would like to have the option of paying your loan off quickly, but want the security of a lower payment.
We also receive many questions about how much closing costs will be and if a fixed rate is better than an adjustable rate mortgage. Because financial institutions offer so many different types of loans, it is always best to ask your lender what they offer so you can decide which one is best for your situation. Closing costs are also something that can be variable. There are times where institutions offer reduced closing costs and you may also be able to work with your seller to reduce your closing costs. We recommend you reach out to our preferred lender.