Mortgage Loan Calculator Definitions
The following is a list of terms you will see on the Wasatch Peaks Credit Union mortgage loan calculator. These definitions should clarify any questions you may have.
Home Price
The price of your home includes the total amount of money your projected home will cost. You may put in a round estimate if you wish, or a figure that includes taxes, titles, and associated fees.
Down Payment
The down payment placed on your home is the amount of money you agree to pay without the help of a lender. For many borrowers, this figure is a minimum of 20% of the cost of the home. However, you may choose to put down a higher or lower amount of money.
Interest Rates
The interest rate of your mortgage loan will be determined by several financial factors, including your credit score, debt repayment history, and more. The number is greatly affected by the Prime Rate, which is federally managed and fluctuates over time.
Mortgage Loan Terms
Mortgage loans come in a variety of terms, usually between 15 and 30 years. Smaller term lengths lead to higher payments with less interest, while longer terms do the opposite.
Estimated Monthly Payments
Your estimated monthly payment will be generated using the information provided in the other four categories. Keep in mind that this is a rough figure and not a final estimate.
Other Factors Of Your Mortgage Loan Rate
Your interest rates may be affected by certain factors under your control. Some of the most important are discussed below.
Credit Scores
Prime credit scores are looked upon more favorably during a mortgage loan approval process. This is generally due to associated financial responsibility over time. However, it is important to note that having a subprime credit score will not necessarily keep you from applying for a home mortgage loan.
Type Of Employment
Long term employment is often a plus when looking to finance a home. Some careers, especially those in Government or the United States Armed Forces, have access to benefits that may affect their monthly payments. Please talk to a credit union representative for additional information.
Income
Many lending institutions prefer to see a monthly income that reflects financial capability in the purchase of a home. Several programs exist to help those who are buying a home for the first time, or who have tighter mortgage loan budgets.
Apply NowLearn More
