Why You Get A Different Number When You Run A Mortgage Calculator

Dated: 08/31/2016

Views: 663

Johnson City Homes

If you're shopping for a home right now, your computer knows it. Visiting site after site of homes on the market, an algorithm picks up on the fact, and your screen will forever be filled with other sites about home buying and even things associated, like obtaining a mortgage. Ooo! Right? You click, you enter your buying price, and a few other pieces of information, and viola! Your mortgage payment pops up on the screen. Perfect! Or is it?

Before you go running to the bank with down payment money in hand, we'd like to share with you why your payment will likely vary from those online calculators. 
One of the best things to know when you use a mortgage calculator is that most all of the rates you see are “published” rates. Many times an additional fee is required to earn the published rate, and keep in mind, the additional fee to get the the published rate is IN ADDITION to the required down payment.
Another thing to keep in mind is that lenders may publish rates that have prerequisites. The rate you see may assume specific things about you or the home you're buying to get the rate. Some of the factors may be equity in a property, a specific credit score number, a specific loan amount limit, or a specific type of home. Even if all the stars are in alignment, lenders may round dollars to a certain percent in certain increments, changing dollar amounts.
We know, the head spins for us too sometimes when we see loan calculators that vary in information. The best piece of advice we can offer you is to contact a professional, qualified lender. If you need some guidance to a trusted, proven, reputable lender, call us! We've done hundreds of transactions, and would be very glad to introduce you to the great wealth of best lenders in the TriCities. Call us at (423) 433-6517 or just stop by our office inside Keller Williams Realty at 1033 Hamilton Place, and we'll start on the big picture (with no algorithm). *S*

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Rayne Price

Holding a BS in Environmental Science, and MA in Education, real estate was not Shields Team Buyer Specialist Rayne Price's first career choice. It was only after encouragement from his wife and a cl....

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