Q:

What tools can I use when dealing with home loans?

A:

Quick Answer

Most of the tools available that aid in estimating, obtaining and managing a home loan are online calculators. These calculators rely on accurate user input of certain variables related to the mortgage, household income and home to be purchased. The tools calculate values that are useful or necessary to know for dealing with home loans. Information is critical for mortgage shoppers, the Federal Trade Commission states.

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What tools can I use when dealing with home loans?
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Full Answer

The Federal Trade Commission advises consumers who are seeking to obtain a home loan to get information from several lenders in order to compare the mortgage terms offered. Required information includes knowing how much of a down payment the buyer can afford, all costs involved in closing the loan, the home loan type and interest rate. Additionally, potential borrowers should know their credit score and debt-to-income ratio.

People with existing mortgages also have calculator tools available online. Calculators are readily available to help mortgage holders calculate the mortgage's loan-to-value, which estimates how much is owed on the mortgage in comparison to the home's current market value. The impact of refinancing or making a modification to an existing mortgage can be calculated using one of the many financial calculators available online at sites such as Realtor.com and Fannie Mae's KnowYourOptions.

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