Finding Affordable Mortgage Rates

Buying a home you like and can afford is not an easy task or something you can do in a day. Whether you’re buying property in Utah or somewhere else, the process requires a lot of preparation, starting with having the financial resources for it—and this may be the most crucial part.

Indeed, before you can even think of buying a home, you must know first which lenders may grant you the necessary home loan or mortgage at fair rates. The process doesn’t stop there, however, as it goes further towards asking yourself if you can afford the monthly payments proffered by the lenders, which really means determining which of them will give you the lowest mortgage rates possible.

Mortgage rate refers to the interest charged on the mortgage and this depends on a lot of factors, including your credit standing. Mortgage rates can also be either fixed (remain the same for the period of the mortgage) or adjustable (vary with a benchmark interest rate). The amount of the loan, the down payment, and the length of the term also determine the mortgage rates.

The good news is that if you're a potential homebuyer, you can compute for the range of possible mortgage rates through online mortgage calculators. In this manner, you can cut through the some of the selection process while avoiding surprises that could delay your home-buying efforts even further.

Calculating Monthly Mortgage Payments

Buying your first home in Utah or anywhere around the country would require getting your finances in order first—and yes, you may need to take out the good ol' calculator from your drawer for this.

The first step is to figure out how much you can afford to pay for mortgage. To calculate this, you need to consider your gross household income, i.e., your own plus that of your partner or spouse (if any), along with any other income you may have, either from a part-time job or a small business on the side, and consider this as Figure A. Afterward, compute for your household expenses by adding together how much you spend for groceries and gas and your monthly bills--utility, credit cards, mobile phones, car loans, student loans, and others; consider this as Figure B.

Typically, the result of subtracting Figure B from Figure A will give you an idea of how much you can still spare to pay for your mortgage. However, keep in mind that you also need to allot funds for health emergencies, household repairs, and baby things, so you need to factor all of these as well. Once you have worked them all into the equation, you'll have a good idea of a manageable monthly mortgage payment for yourself.