Owning a condo is a long-term financial commitment. Nothing is more devastating than finding the unit that you really, really, really like and discovering that your savings are not even enough to cover the down payment. Ouch! More often than not, you ask yourself this question – how much a condo unit can I afford? You can always search affordable condo in Bacolod sample computation online, that is if you want to own a unit in this condo building.
However, if you want more money-related information other than what the site provides, you can always use a mortgage calculator.
Keeping a mortgage calculator handy
Don't you ever forget that buying a condo unit is a numbers game. Definitely, you'd want to maximize the unit's value. Thus, you look at the probable amount of money that you could be spending to acquire the property. You'd also want to know the probable amount of money that you can make from that property.
This is where the role of a mortgage calculator comes in. See below.
1) Home Loan and Mortgage Calculator – The calculator determines the monthly amortizations. You just have to know the selling price, percentage of down payment, loan tenure and percentage of interest rate.
2) Amortization Calculator Scheduler – The calculator also determines the monthly mortgage payments. You need to put the total number of months of loan, percentage of annual interest rate and the total amount of loan.
3) Loan Payment Calculator – The calculator determines the monthly payment and generates an amortization table. Also, you are required to put the loan amount, loan term in years or months, interest rate and loan start date. This calculator also determines the effect of extra payments if you wish to pay for them.
Notably, the majority of the banks offering a home loan to their clients have their own loan calculators on their respective websites.
When to use the mortgage calculator
Evidently, it is more appropriate to use the calculator after scouting for various condo units that suit your liking. Of course, that is if you haven't found 'the one' yet. You need to know the total selling price of the unit, the required down payment, the total number of years (and months) that you need to pay for it and the percentage of the interest rate.
With all these, it would be easier to know if you can afford that condo unit or not. The debt-to-income ratio, which is also calculated by the banks to determine your capacity to pay, should be around 25 to 30%. This ratio is actually the percentage of your monthly income spent on debts including the mortgage.
Remember that paying for the monthly condo amortization isn't the only expense a condo ownership incurs. There are many others such as the monthly condo association dues. You must take all the expenses into account to know whether you can truly afford a unit now. If you cannot afford it just yet, you can always reschedule. There's virtue in delayed gratification.
Anyhow, there is always a mortgage calculator to help you in the future to ascertain that you are 101% financially ready to own a condo unit. Until then, perhaps, know that you will have a longer time to prepare not only for the down payment but for the monthly amortizations as well.