Maximum Mortgage Definition With mortgage rates at all time lows, now is the time to get in on that new house or investment property that you have been thinking about. However, it is difficult to really determine how much of a mortgage you can afford without asking the advice of a mortgage professional. Or is it? The Maximum Mortgage Calculator is a free online calculator that can keep you from having to pay a real estate professional awful lot of money to find out something that you could find out from a simple tool. The Maximum Mortgage Calculator is that tool, the free resource that can quickly tell you exactly how much of a mortgage you can afford. With the Maximum Mortgage Calculator, all you have to do is put in the parameters that every mortgage must consider, and click the “calculate” button, and you will see exactly how much mortgage you can afford. Try this FREE financial calculator today! The parameters that the Maximum Mortgage Calculator uses are below.
The Maximum Mortgage Payment: In this particular block, you will place the numeric value of the maximum monthly payment that you can afford for a mortgage. You do not need to include commas or dollar signs. Also, be sure to translate other currencies into American dollars before you put the number in the blanks, as the Maximum Mortgage Calculator is based on American dollars.
The Mortgage Interest Blank: Here is where you place the interest rate that you will be paying on the mortgage that you are considering. Although there are many different interest rates that you must consider when you are going for a mortgage, the general rule is to put in the largest interest rate that you can think of, simulating a worst-case scenario. Adding all fees and upfront payments is also recommended, as you want to get the figure that is most likely to occur.
The Years and Mortgage: Here there are usually only two responses that you can give – 15 years and 30 years. However, there may be other mortgage packages that you are considering. Simply put the number of years that you expect to be in the mortgage here.
After you have placed everything in the blanks, you can hit the calculate button at the bottom. You will then see the total amount of house that you can afford based on the parameters that you have given.
How to Calculate Maximum Mortgage Let's be honest - sometimes the best maximum mortgage calculator is the one that is easy to use and doesn't require us to even know what the maximum mortgage formula is in the first place! But if you want to know the exact formula for calculating maximum mortgage then please check out the "Formula" box above.