This is probably the most misleading mortgage calculator there is. In most cases families and individuals starting out, who plan to buy a home, don’t pay the maximum rent they can possibly afford but rather stay in a rental property as their income grows and start saving for a down payment to purchase their dream home.
Real Estate Agents have traditionally relied on a calculation like this to convince those who think they can not afford to purchase otherwise, but as stressed above the renter affordability calculator will only serve those renters who pay the maximum possible rent they can afford and still managed to save enough money to pay for the down payment and closing costs of new home purchase.
If the above describes your situation, then we recommend you visit our mortgage qualifying calculator which will be a more suitable tool for calculating the maximum mortgage amount that you are qualified for.
What is a mortgage?
Mortgage is a lien on immovable property, which authorizes the creditor to, if the debtor does not pay out the maturity or if there is a violation of another obligation that activates the mortgage, requires the collection of claims secured by a mortgage from the value of the real estate, before ordinary creditors and before later mortgage creditors, regardless of in whose ownership the real estate is located.
Let us break it down
Banks are increasingly offering loans with long repayment periods, higher loan amounts and maximum collateral. Namely, if we want to take more money, to repay it for 10 years and not to have anyone ask us what we are going to do with it, banks, as security agents, seek funds that maximally reduce the risk of mortgaging.
Although we are accustomed to it, recently a mortgage is a security that appears in other categories of loans. It is perfectly logical to give mortgages for a home loan because the collateral security for a loan that we will repay on an average of 20 years must be of sufficient quality even after 10 or 15 years of repayment of the loan, we can service the payment if there is a problem in repayment.
Don’t be fooled
To be sure you are making the right move for yourself and/or your family, the best thing you can do is to educate and inform yourself the best you can. Look at various options you might have, use numerous calculators on the internet and pay close attention at variables those calculators are offering to you.
Be sure in what you are getting into before it is too late for you to correct any mistakes you might make. Renter affordability mortgage can be a great thing if it is done right, and it can be really beneficial to you. Find your perfect solution by researching the market and getting a deal that is tailored to your needs and wishes. In that way, you will surely be able to manage whatever comes your way.