Buzz
While consumers often search for discounts and ways to save, we tend to assume home buying is always a smart investment without considering additional expenses. These hidden costs can add up to thousands of dollars throughout the life of your mortgage. Use a mortgage calculator that factors these in.
These calculators are commonly known as PITI calculators, which stand for principal, interest, taxes, and insurance. In addition to loan payments, they show you how much you’ll pay in property taxes and insurance over time. If you have mortgage insurance, include that in your insurance calculation when using the tool. Here are some calculators that offer a clearer financial picture when considering homeownership:
Bankrate’s PITI calculator
The New York Times Rent vs. Buy Calculator
Smart Asset’s Closing Cost calculator
These tools should be part of your research, but don’t stop there. For further insights into mortgage shopping using calculators, check out the full article from the CFPB at the link below.
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