Mortgages…EWW!

August 20, 2010

I know…mortgages are not a FUN topic but they are very important.  Tax saving, ability to have the lifestyle we want while still enjoying our homes, complicated, kind of scary, not always welcome in our lives…it’s all part of it!  They can also be an asset to our finances and we have to plan carefully with them.

Yahoo finance has two fantastic and very easy to use calculators that I have just bookmarked. 

“How Much Home Can I Afford?” http://finance.yahoo.com/calculator/real-estate/hom01  I like this calculator because it’s REAL.  It accounts for car payments, credit card payments and the entire household income in a very easy to use and understand format.  This is a fantastic place to start before a buyer goes out and begins to tour homes for sale.  Seeing a home that they love and then can’t afford is a sad day.

“Compare” http://finance.yahoo.com/calculator/real-estate/hom08  This calculator is GREAT!  It breaks down the components of a mortgage and allows you to compare where you are really paying.  It was set up to compare a “no-cost” mortgage to traditional mortgage but is a great learning tool for buyers that are new to mortgages.  Have some adult children that are thinking about buying a home?  Have them sit down in front of this calculator and start to learn the terms.