Knowing what you need to repay every month is vital to managing your mortgage over the long term. Yes, this may sound obvious, but some people are simply unaware of what they owe to lenders.
This blog explains how to calculate monthly repayments on your mortgage, so you are more in control of your finances.
If you already have a mortgage and want to know what is left to repay, we recommend using a mortgage calculator to discover what is outstanding.
A mortgage calculator asks you to provide specific information, and then uses this data to determine how much is left to repay on your mortgage.
On Capita’s mortgage repayment calculator, you will need to provide:
The mortgage repayment calculator will then tell you:
You will also discover what is left to pay in interest andprincipal on the loan. (Head herefor more on interest and principal).
Of course, some calculators provide more or less detail, and no online calculation tool can be entirely relied upon.
This is why we recommend you speak with a mortgage broker, so they can look at your figures and liaise with your lender to discover a more accurate result.
If you want to work out what you can afford to pay on a monthly basis, then you will need to use a different kind of mortgage calculator.
The calculator on Capita’s website determines how much you can afford to borrow, based on your current spending and cash surplus (the cash you have left over once your bills and other expenditure is covered).
You’ll also need to include the term (number of years) of the prospective loan and the interest rate that applies.
Then, select ‘monthly’ on the dropdown, and see what you can afford to borrow. You’ll find out your monthly repayments, and the total interest payable on the loan.
The calculator will also determine the deposit required on the loan.
As we said earlier, online calculatorsprovide a good idea of what you can afford to pay, but they can never be completely accurate.
This is why we highly recommend speaking with a good mortgage broker about what you can afford to pay.
It can be easy to overlook small or even large debits and credits that apply to your life – simply because there is so much going on.
A good mortgage broker makes sure you have accounted for all of your loans and debt, no matter how seemingly small, as well as income or earnings.
They will also assist you with identifying a loan that matches your goals and circumstances, which means you end up with a loan that fits you, and saves you more.
So, by all means, use an online calculator, but go and see a good mortgage broker to make sure you’re getting all the right information.
Contact us to get started.