In this country, money spent on home improvements by homeowners continues to grow each year. A recent study conducted by the Harvard Joint Center for Housing Studies concluded that homeowners spent $149.5 billion on home improvements during 2005. This represents an increase of 4.3 percent money spent over the levels in the year 2004.
Homeowners generally use some type of home improvement loan to finance their home improvement projects.However, the process of trying to figure out how money is needed and how much that homeowner can reasonably afford tends to be tricky business.
Home improvement loan resources that are available via the internet can reduce much of the research time from the financing process. There are many of home improvement loan calculators within easy reach on the internet. Many home improvement loan calculator resources on the internet are both user friendly and include clear explanations of the home improvement loan options available.
Learning how to use a home improvement loan calculator can help homeowners try various loan combinations to see which home improvement loan option best fits their financial situation. A homeowner can find out how different home improvement loan options will translate in terms of repayment costs in just a few minutes. Homeowners can also see the amount of money they can borrow and the tax savings that are available.
Using a home improvement loan calculator isn't difficult. The basic steps are as follows:
1. Enter the loan amount. This is the amount of money you want to borrow.
2. Enter the rate. This is the interest rate you would prefer to pay. (Note: This is not necessarily the interest rate for which you will qualify.)
3. Enter the term of the loan. This is the length of time you want to take to repay the loan.
4. Click the calculate button.
The resulting numbers will give you an estimate of the principle and interest payments required to repay your home improvement loan.
Homeowners should be fully aware of all terms, fees, costs and charges involved in the home improvement loan in addition to the schedule for repayment. Home improvement loan scams can be a big problem for homeowners, especially senior citizens. This report comes from the Better Business Bureau and the National Consumer Law Center. It is very much a case of buyer beware when it comes to home improvement loan financing options. Do yourself a favor and learn how to use a home improvement loan calculator. This can give you a good head start on getting a great home improvement loan.
Home Loan Calculator Amortization
Getting yourself a home loan calculator is the first step you need to take if you want to get the best type of loan. Many homebuyers however do not realize this is an important first step ? and they make the mistake of going ahead and look at houses for sale and talk to realtors without getting a home loan calculator first.
Why is it important to consult with your home loan calculator first and foremost?
The amount of money you have available for down payment impacts on all aspects of buying a home, namely how you write your purchase offer and the home loan programs you qualify for. A home loan calculator is a very useful tool which tells you what you can afford, which you need to know before you start to look for your dream home.
Use A Home Loan Calculator To Decide Upon The Right Mortgage Programs
With the home loan calculators, you will be able to know if you will have enough available for a minimum down payment. This is important because some home loan programs are limited to only a few types of mortgages. If you have enough for a down payment, but need the lender or seller to cover all or part of your closing costs, this further limit your options and it is important for you to know this in advance before you start talking to the homes sellers or realtors.
If you intend to borrow all or a part of the down payment from your 401K or retirement plan, different loan programs have different rules on how you qualify. If a potential borrower has enough money for a large down payment, then they have a lot of options.
Conventional fixed rate loans, adjustable rate mortgages, buy-downs, VA, FHA and graduated payment mortgages are the varied programs of home loan choices.
Before You Write Your Offer, Use Your Home Loan Calculator
How you write your offer to purchase a home depends on your down payment, thus making it important that you use the home loan calculator first. In addition, it is important for you establish the amount of the monthly mortgage payment you can comfortably afford subject to the home loan you intend to take.
What does the loan program you are intending to take allow? Can you ask the seller to pay all or part of the closing costs? For instance, for smaller down payments, lenders allow the seller to pay less closing costs than for larger down payments. The type of costs which the seller is allowed to pay varies by home loan programs. It is important for you to know all this information before you write an offer.
The amount of your down payment also affects your ability to qualify for a loan. The more down payment you have, the more flexible and accommodating lenders tend to be. On the other hand, with small down payment, lenders tend to be strict about having you conform to their underwriting guidelines.
Based on the various factors discussed above, you can appreciate how important it is for you to use your home loan calculator when deciding on a mortgage loan.
Both Rebecca Welch & Dean Shainin are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Rebecca Welch has sinced written about articles on various topics from Finances, Build Online Business and Home Based Business. Don't sign your name to that home improvement loan contract! Learn about the home improvement loan calculator. Rebecca Welch's top article generates over 33100 views. Bookmark Rebecca Welch to your Favourites.
Dean Shainin has sinced written about articles on various topics from Mortgage, Adsense and Bankruptcy Law. Dean Shainin is a consultant specializing in home loans. To see a list of recommended loan companies, tools, resources, and free quotes, visit:. Dean Shainin's top article generates over 90500 views. Bookmark Dean Shainin to your Favourites.
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